Erosion of Tax Privileges
From 6 April 1999, the Advanced Corporation Tax relief on share dividends received on a PEP was halved, partially ending their tax exempt status. From 6 April 2004 all relief on dividends was removed, although no additional tax on a higher rate is due where otherwise it might be. Gains on capital and all other forms of income such as cash interest and bond income remained tax free. Significant cash holdings for any length of time are discouraged by the HM Revenue and Customs and the holdings in a PEP should be largely based on shares or corporate bonds.
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Famous quotes containing the words erosion of, erosion, tax and/or privileges:
“The new concept of the child as equal and the new integration of children into adult life has helped bring about a gradual but certain erosion of these boundaries that once separated the world of children from the word of adults, boundaries that allowed adults to treat children differently than they treated other adults because they understood that children are different.”
—Marie Winn (20th century)
“Inter-railers are the ambulatory equivalent of McDonalds, walking testimony to the erosion of French culture.”
—Alice Thompson (b. 1963)
“But the tax collector, standing far off, would not even look up to heaven, but was beating his breast and saying, ‘God, be merciful to me, a sinner!’”
—Bible: New Testament, Luke 18:13.
“Mischief springs from the power which the moneyed interest derives from a paper currency which they are able to control, from the multitude of corporations with exclusive privileges ... which are employed altogether for their benefit.”
—Andrew Jackson (1767–1845)