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.
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.
