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Final dividend credit decision goes against non-taxpayers

In the 1997 Budget the Chancellor announced the withdrawal of payable tax credits as part of the package to reform the corporation tax system as a whole. Amongst other things it meant that individuals would not longer be able to reclaim the tax credit after 5 April 1999. This ground has been pretty well covered within Techlink and elsewhere.

Following representations from interested groups during the passage of the Finance Act 1998 ministers undertook to look again at the arrangements for individuals. The main concern centred on the plight of non-taxpaying pensioners whose investments are an important source of income. However, the ministers have decided that payments of tax credits on dividends to individuals will be withdrawn as planned with effect from 6 April 1999.


It was hoped that these &#34non-reclaim&#34 provisions would be relaxed for non-taxpayers. Such a relaxation would have helped structures founded on mutual funds producing income (on which tax credits would be reclaimed) to be used in tax effective funding for further education. However, it is not to be. Non-taxpaying investors (from a tax standpoint) should look then to producing gross income (or income on which tax can be reclaimed) from other than equities or to focus on capital gains which most cases (given the availability of the annual exemption) would be tax free.


Lambeth to offer ISA feeder account

Lambeth Building Society is launching a pre-cash ISA feeder account and two capped-rate mortgages.The pre-cash ISA has a minimum investment of £3,000, 35 days notice of withdrawal and no obligation to open a cash ISA with the society.The mortgages are capped at 4.99 per cent to May 2000 and 5.14 per cent to March 2001.Both […]

Portman launches five mortgages for New Year

Portman Building Society is celebrating the New Year by launching five new mortgages.The range includes a capped-rate mortgage at 5.99 per cent until March 2001 and a no fees fixed-rate mortgage at 6.75 per cent until March 2004.A fixed-rate at 5.99 per cent until march 2004 and a mortgage offering a 2 per cent discount […]

Building Societies get together to fight off Hardern

Seven Building Societies are meeting to share information about identical demutualisation proposals they have received from self-proclaimed carpetbagger Michael Hardern.Harden who has failed to be elected to the Nationwide Building Society for two years in a row is calling for the companies&#39 board of directors to take immediate steps to convert to plc status.Coventry Building […]

Stephen Timms becomes pensions minister

The relatively unknown junior minister Stephen Timms has been appointed as Minister of State at the DSS replacing John Denham who switches to the Department of Health.The move represents a significant promotion for Timms, MP for East Ham, who is expected to take on both the welfare reform and pensions briefs. Timms was made under-secretary […]


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