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Investment Clubs Manual075 - More Information More...

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Unformatted text preview: More Information More information, Including details of capital gains tax allowances, can be obtained from a local IR office or by visiting the website wwwlniondrevenuegomuk The Revenue publishes its guidance on investment clubs to local offices in its Capital Gains Manual at paragraph CG 20600+. This can be viewed on the IR website. Copies of the Standard Form of Agreement, a covering letter which invites the club to adopt the Standard Form of Agreement and Forms 135(New) can be obtained either from local offices or via the IR website. There is more information about investment clubs on the Revenue‘s website - click on the A-Z Index at the top of the home page then look up investment Clubs. How much will you pay? Sadly for the inland Revenue they get very little return for their involvement with investment clubs. Most of the rules are there solely to prevent any abuse of the privileges afforded to clubs. Unless a member is subject to higher rate tax, he is unlikely to have to pay tax on dividends received as most of these will carry a tax credit which meets the tax bill on the distribution. Similarly, they will not be liable for capital gains tax unless his/her total gains from all sources exceed the annual allowance (£8,800 for 2006/2007 and £9,200 for 2007/2008). In conclusion... Finally it must be placed on record that the Revenue has the legal right to call upon investment clubs to supply full details of all their transactions, notwithstanding the arrangements outlined above which have been agreed in principle with the Revenue. in practice it is only in very rare cases that they do so. Clubs and members who adopt the procedures recommended above should have no problem with the Inland Revenue but should any queries arise they should consult professional advisers. October 2008 ProShare Investment Club THE MANUAL ...
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