A capital gain is a gain on an asset not bought and sold in the normal course of trade by the person making the gain. These gains are taxed in Britain and in many other countries by means of a capital- gains tax. Research Capital Gain
Dividend stripping (bond washing) is the practice of buying gilt-edged securities after they have gone ex- dividend and selling them cum-dividend just before the next dividend is due. This procedure enables the investor to avoid receiving dividends, which in the UK are taxable as income, and to make a tax-free capital gain. This activity has mainly been indulged in by high-rate taxpayers but has now become of little interest since the rules regulating the taxation of accrued interest were changed. Research Dividend Stripping
The UK Department for National Savings was established in 1969, having previously been known as the Post Office Savings Department. It is responsible for administering a wide range of schemes for personal savers, including premium bonds, income bonds, deposit bonds, and yearly savings plans. In addition the department has offered a range of National Savings Certificates costing either œ10 (up to 1981) or œ25 (from 1981), some of which have been index-linked. The income they pay is income- tax free and the element of capital gain is free of capital-gains tax. Research National Savings
The Probert Encyclopaedia was designed, edited and programed by
Matt and Leela Probert
Abbreviations
Research Capital Gain
