Unformatted text preview: This ensures that ifa member has Joined halfway through the year then they will only be
liable for paying tax on the percentage of the club's assets that they have held during their
membership. Under the heading ‘Amounts of gains and income apportioned to members’, the individual
member's proportion of the club's gains and losses should be detailed, under the following
categories: Amounts of gains and income apportioned to members. Capital Untaxed UK dividends income Overseas
gains/losses income taxed at income
£ 2 basic rate taxed at less
Amount than basic received rate 1. These are the basic gains and losses that the club has made throughout the year on
any Investments that they have sold. You do not need to worry about 'paper proﬁts'
on investments that the club still holds. Capital gains tax might be payable if the
member's share of the club's gain, either solely or in combination with any other
investments that they hold, take them over the tax free allowance (£8,500 for the tax
year 2005/2006). Remember that there is a tapering system for capital gains which
reduces the amount of the taxable gain according to how long shares have been
held. The responsibility for calculating individual taper relief is the responsibility of
each member and not the club. A detailed explanation of the calculation is included
in PIC’s Investor Update number 9. 2. Untaxed Income Is that received from investments upon which no tax is deducted at
source, bonds for example. 3. Dividends will be paid to the club from time to time on the investments that it holds.
Dividends will normally be paid twice yearly; as an ‘interim’dividend in the course
of the company's ﬁnancial year and as a 'ﬁnal‘dividend when the year's proﬁts have
been worked out. o b 2008
61 no er ProShare Investment Club THE MANUAL ...
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- Spring '10