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Aberdeen Asset Management launches progressive growth trust

The progressive growth trust from Aberdeen Asset Management, has been targeted at investors who want to capitalise on the £7,200 a year capital gains tax (CGT) allowance and who are trying to save for future costs such as school and university fees or retirement.

It does this by investing in zero dividend preference shares. Zeros give fixed capital returns at a pre-set date so this means that investors do not have to pay income tax.

The unit trust can be included in an Isa, with no tax payable at all. If the investor has already utilised their Isa allowance then the fund can be used to increase the amount of tax-free investment. With no CGT payable on the first £7,200 of growth, anything over that amount is covered under the taper relief rules. This means that tax can fall to as low as 12 per cent for a basic rate tax payer. Married couples can combine their allowances to a total of £14,400.

Many investors are not aware of the capital gains tax allowance and so it remains underused. Although a worthy product because it highlights the CGT allowance, it is not alone in the market and offers nothing that is unique.

According to Standard & Poor&#39s the Aberdeen master growth fund is ranked 31 out of 58 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to July 17, 2000.


Correspondent&#39s Week

I return late on Sunday evening after a weekend in Berlin with my wife Sarah, who has been singing with the Berlin Philharmonic Choir.While in Berlin, I met the chief executive of Deutsche Bank Mortgages to see what regulatory lessons I could learn in Germany. I established, with some degree of satisfaction, that the UK […]

Mortgage regulation system to run until 200

The system for statutory regulation of mortgages, which controversially excludes mortgage advice, looks set to run until at least 2003.The FSA regulation ofmortgages will not come into effect until autumn next year. After two years, it will be reviewed by the Government under plans announced as part of the Treasury response to the Cruickshank review […]

Evergreen Retirement Assurance Enhanced pension annuity – 19th June 2000

Minimum investment: £10,000.Minimum age: 50.Income frequency: Choice of monthly, quarterly, half-annually or annually.Charges: None.Options: Dependent&#39s benefit, retail price indexation option, payment guarantee.Commission: Fee-based or flat rate of 1 per cent.Tel: 0845 333 3321.

Rowan & Co joins forces with City Financial Managers to bring dynamic theme fund unit trust

Rowan & Co has joined forces with City Financial Managers to bring the dynamic theme fund unit trust.A fund of funds administered by City Financial with the investment management carried out by Rowan & Co, it will invest in 15 different technology related funds. These include funds initially from Gartmore, Framlington, Mercury and Aberdeen. The […]


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