IMC III Flashcards
Tax Implications of Investment into a Life Company Fund
- 20% corporation tax deducted on income and gains
- Additional income tax will be charged for higher or additional taxpayers - cannot use their CGT allowance. If due 40% tax, then additional 20% will be deducted as Income tax
How much % of the original capital invested into a life company fund can be made on a tax deferred basis?
5%
Tax Benefits for Venture Capital Trusts
- Income tax relief 30% if held for 5 years
- dividend are tax free (no minimum holding period)
- No CGT, cannot use losses against gains
Max investment per year in VCT
200,000
Enterprise Investment Schemes invests in
Unquoted companies with total assets no greater than £15m before the issue of the shares. This limit is called Gross Assets Test
EIS max investment per tax year
£1mn
Minimum investment per tax year EIS
£500
EIS CGT?
- No capital gains tax BUT losses can be offset against income or other gains
SEIS - what + tax benefits?
Targets start-up companies offering 50% income tax relief on up to £100,000 investment per year. Up to 50% of gains are exempt from CGT
What reports must authorized fund managers provide and when?
- Must send a short report to all unitholders half-yearly and
- Prepare a long report yearly that is availabqle on the request of the unit holder
How often does reconciliation of assets not held by the firm have to be preformed?
As often as necessary but at least monthly
How often does firms that physically hold custody assets undertake a physical asset reconciliation?
As often as necessary but at least every six months
Record Keeping MiFID
5 years
Record Keeping life policy or pension scheme
5 years
Record keeping non-MiFID
3 years
Record keeping pension transfers, opt outs
Indefinitely
