BFS Investments, which specialises in split capital investment trusts, is offering a free guide to z...
BFS Investments, which specialises in split capital investment trusts, is offering a free guide to zero dividend preference shares aimed specifically at intermediaries.
The guide looks at what zeroes are and how to make a clear analysis of risk and returns.
It examines tax treatments and ways in which zeroes can be used as a tax efficient vehicle, in some cases providing larger tax breaks than Isas, according to the group.
The guide, Easier Way Up?, explains that on zeroes there is no income tax to pay as there are no dividends and the returns from the vehicle are treated as capital gains but can be shielded from any liability, making it tax free. Nigel Sidebottom, director of BFS Investments, said: "With a little planning zeroes can result in a very tax efficient vehicle and provide a larger tax break than Isas.
"With zeroes you know exactly what to expect and can make an educated and informed analysis of risk and returns. This is in contrast to many other types of investment. With zeroes you know what the price is when you buy them, when they will be repaid and what you should get back on repayment."
Also discussed in the guide are: who should invest in zeroes and how they can meet a wide range of investment needs, key terms such as asset cover and hurdle rates and how the returns compare with those on other investments in the marketplace.
For a free copy of the guide contact: 0800 731 9222.
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