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Investment Company with Variable Capital |
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Investment Company with Variable CapitalAn open-ended collective investment vehicle, similar to a unit trust. As with unit trusts, the money invested by savers is pooled, and then invested in the markets by professional fund managers appointed by the ICVC. The advantage to savers is that by putting their savings together with savings of other individuals, they get the benefits of diversification, and also of professional fund management. The difference between an ICVC and a unit trust is that an ICVC is a company rather than a trust. If you put savings into it, you have shares, not units. Also, an ICVC has just one price, whether you are buying or selling shares in it, with charges shown separately.Similar MatchesRegulated investment companyRegulated investment companyAn investment company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided. Foreign direct investment (FDI)Foreign direct investment (FDI)The acquisition abroad of physical assets such as plant and equipment, with operating control residing in the parent corporation. Enterprise Investment SchemeEnterprise Investment SchemeThe Enterprise Investment Scheme is a UK tax incentive scheme designed to encourage investors to invest in unquoted companies. The benefits are:Income tax relief at 20%: so if you invest £10,000, the taxman gives you £2,000 back.CGT relief: provided you hold your investment for five years, any gains subsequently made are free of capital gains tax.Tax relief on losses: if your EIS investment is a disaster, you can set the losses off against gains made in the tax year in which you incur losses.Rollover relief: if you use the proceeds from selling shares in Company A to invest in Company B, and Company B is an EIS-qualifying company, you won't have to pay tax on the gains made from Company A until you subsequently dispose of Company B's shares. i.e. your gain is rolled over.The maximum amount you can invest in an EIS is £150,000 annually. Similar tax breaks are available from investments in Venture Capital Trusts (VCTs). Essentially, these are investment trusts that invest in small unquoted companies. As with EIS investments, there are lots of rules which, if broken, will invalidate the tax advantages.The risks associated with EIS companies are high and you should take professional advice before committing funds to them. Bank Investment Contract (BIC)Bank Investment Contract (BIC)Interest guaranteed by the bank in a Interest over a specific time frame with a specific Interest. Investment bondInvestment bondA unit linked single premium whole life assurance policy. Part of the premium gives life cover whilst the balance is invested in unitised funds. Under certain circumstances, since the bond is a life policy, certain tax advantages may be enjoyed. For example if the capital and annual interest are reinvested in full, there is no immediate liability to higher rate tax. If the proceeds of the bond are subsequently taken when a former higher rate taxpayer has become a basic rate payer, there is no higher rate tax liability. Further SuggestionsTrade and investmentPersonal Investment Authority Unit investment trust Foreign Direct Investment investment grade Investment management Investment agreement Alternative Investment Market investment trust protected investment products Registered investment adviser dividend reinvestment plan Investment bank Association of Investment Trust Companies Return on investment (ROI) Normal investment practice Foreign investment argument for protection real estate investment trust Direct investment Investment Company Act of 1940 Net investment Brown field investment Target investment mix Diversified investment company Investment software |
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