Topic 2 Flashcards
Annual exempt amount
the annual tax-free allowance for capital gains tax
Annuity
a financial product that pays a regular guaranteed income ,in return for a lump sum
Assets
things that a person or business owns
Bonds
see cooperate bond , government bond and saving bond
capital gains tax
tax payable on the gain made when you sell or give away an asset
capital growth
an increase in the market value of an investment
capital sum
the total amount borrowed or saved / invested , before the addition of interest
commodity
goods that share the characteristics wherever they are produced and whoever produced them
corporate bond
a product that companies can use to borrow money over periods of five years or more
corporation tax
a tex levied on the taxable profits of limited companies and some other organisations
diversification
spreading investment across a range of different products , funds or types of asset so as to reduce the potential impact of any doing particularly badly
dividend
a payment of profits from a company to its shareholders often at twice -yearly intervals
endowment policy
an insurance product that pays our a lump sum after a specified term or if the insured person dies before
