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Exit charge |
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Exit chargeInstead of making an initial charge, some unit trust companies (particularly PEP managers) make a charge if units are cashed in, for example, within five years. In the US this is known as a back end load.Similar MatchesLate chargeLate chargeA charge imposed by a lender to a borrower when the borrower fails to make payment on the due date. Charge offCharge offSee: Bad debt Chargeable transferChargeable transferA gift or other transfer of value made by an individual which is not covered by any of the various exemptions and which is therefore a transfer for inheritance tax purposes. Management chargesManagement chargesCharges made by the managers of, for example, a mutual fund or unit trust which cover investment management and administration costs. Charges usually take the form of a percentage fee based on the value of the fund. The charges for unit trusts tend to be higher than for investment trusts (typically 1.5% as against under 1%). Tracker funds, which are passively managed to follow an index, are much cheaper to run, and the costs passed on to investors are correspondingly lower. Exchange-traded funds, a new type of collective fund imported from the USA, also have lower charges than conventional unit trusts. Chargeable event certificateChargeable event certificateA certificate issued on the occurrence of a chargeable event. Details listed include the amount of the gain, number of years over which the gain has occurred, the date the transaction took place and that the certificate should be sent to the Tax Office to establish if a higher rate tax liability exists. Proceeds are free from basic rate tax liability. Further SuggestionsImport surchargeSales charge Contingent deferred sales charge (CDSC) chargeable gain Service charge Deferred charge Carrying Charges Discharge fee Redemption charge Late charge Surcharge prior charges sales charge chargeable event Finance charge carrying charges Discharge of lien Charge certificate Late charge Late Charge Noncash charge First charge Bankruptcy charge Carrying charge initial charge |
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