C
Capital - A lump sum of money.
Capital Gains Tax - The tax payable on profit
made on the sale of assets or property other than your home.
Capital growth - An increase in the value
of shares or other assets in a fund.
Capital and Interest Mortgage - A mortgage
product where the payment you make each month covers the capital
and interest on your loan.
Carry Back - Facility for members of personal
pension schemes to have their contribution, or part of it,
treated as being paid in the preceding tax year.
Carry Forward - The facility for members
of personal pension schemes to carry forward any unused tax
relief from any of the six years prior to the year in which
the contribution was to be paid. Carry forward of unused relief
was abolished in April 2001.
Cat Standards - Stands for (reasonable) Charges
or Cost, (easy) Access and (fair) Terms and is a mark awarded
by the Government to ISAs and mortgages which meet these standards.
Commission - The means by which independent
financial advisers or salespeople are paid by an insurance
company for placing business with them.
Contracting in/out - The process by which
you can elect to stay in or opt out of the State Earnings Related
Pension Scheme (SERPS).
Corporate bond - A form of investment offered
by a corporation with the purpose of raising capital, in which
the lump sum is repaid with interest at maturity. Corporate
bonds can be bought and sold on the stock market.
Corporation tax - Applies only to limited
liability companies and is chargeable on the company's profits.
Critical illness insurance - Pays a lump
sum if you are found to suffer from one of a range of designated
illnesses (normally including cancer, heart attack, and stroke
among others). When a condition requires you to stop working
for some time, worries are eased. So, normal practice is to
have enough insurance to cover the mortgage, plus provide a
year or two's income if your savings or other insurance will
not provide. The policy usually pays out after surviving 28
days after diagnosis
D
Death after Retirement Benefits - The pension
and lump sum paid to the deceased member's spouse and/or other
dependants where death occurs after retirement or after the
member's normal retirement date if s/he is retiring late.
Death in Service Benefits - The pension and
lump sum paid to the deceased member's spouse and/or other
dependants where death occurs while still working for his/her
employer, before his/her normal retirement date.
Debit card - Operates like a credit card
except that the normal amount is deducted directly from your
bank account so that no debt is accrued.
Deed of Covenant - An agreement in a deed
to transfer income from one person to another in a tax efficient
way.
Defined Benefit Scheme - Also known as a
Final Salary Scheme. This is the traditional form of company
or occupational pension where your pension is calculated as
a proportion of your salary in the last few years of work -
with the proportion depending upon how many years you have
been in your company scheme.
Defined Contribution Scheme - Also known
as a Money Purchase Scheme. A scheme where the amount of a
member's retirement benefits depends on the contributions paid
into the scheme in respect of the member. The rate of the contributions
is decided by the employer.
Distribution - Payments made to investors
of income generated by an investment fund.
Dividend - The distribution to shareholders
of a company's profits in proportion to the number of shares
held. |
