Financial Investment Opportunities
Financial Investment Opportunities o Kim Tuy n – Sally – F04-193
A report on
Investment and Taxation Decisions
Prepared for:
Ms Joey Lai (Lecturer)
Unit 39: Financial Investment Opportunities
Banking Academy, Hanoi
BTEC HND in Business (Finance)
Prepared by: o Kim Tuy n – Sally – Class F04A
Registration No.: ITP F04-193
Submission Date: 21 November, 2012
1
Financial Investment Opportunities o Kim Tuy n – Sally – F04-193
TABLE OF CONTENTS
INTRODUCTION ............................................................................................................. 3
Part 1. Range of investment available to individuals .................................................... 3
1.1 Assessment of the attitude of individuals to risk when evaluating the suitability of investments ............................................................................................................... 3
1.2 Evaluation of a range of investments available from banks, building societies, insurance companies and national savings ............................................................... 9
1.3 Analysis about the suitability of these products for different people .................. 11
Part 2. Understanding of how the UK system of taxation affects investment decisions12
2.1 Calculation of income tax payable for various individuals and couples ............. 12
2.2 Calculation of capital gains tax liabilities in different situations .......................... 14
2.3 Impacts of tax-free investments to different tax payers ..................................... 20
CONCLUSION .............................................................................................................. 22
REFERENCES .............................................................................................................. 23
APPENDIX .................................................................................................................... 25
2
Financial Investment Opportunities o Kim Tuy n –
A report on
Investment and Taxation Decisions
Prepared for:
Ms Joey Lai (Lecturer)
Unit 39: Financial Investment Opportunities
Banking Academy, Hanoi
BTEC HND in Business (Finance)
Prepared by: o Kim Tuy n – Sally – Class F04A
Registration No.: ITP F04-193
Submission Date: 21 November, 2012
1
Financial Investment Opportunities o Kim Tuy n – Sally – F04-193
TABLE OF CONTENTS
INTRODUCTION ............................................................................................................. 3
Part 1. Range of investment available to individuals .................................................... 3
1.1 Assessment of the attitude of individuals to risk when evaluating the suitability of investments ............................................................................................................... 3
1.2 Evaluation of a range of investments available from banks, building societies, insurance companies and national savings ............................................................... 9
1.3 Analysis about the suitability of these products for different people .................. 11
Part 2. Understanding of how the UK system of taxation affects investment decisions12
2.1 Calculation of income tax payable for various individuals and couples ............. 12
2.2 Calculation of capital gains tax liabilities in different situations .......................... 14
2.3 Impacts of tax-free investments to different tax payers ..................................... 20
CONCLUSION .............................................................................................................. 22
REFERENCES .............................................................................................................. 23
APPENDIX .................................................................................................................... 25
2
Financial Investment Opportunities o Kim Tuy n –
References: Bernd Rohrmann (2005) Risk Attitude Scales: Concepts, Questionnaires, Utilizations. Bymes, J.P., Miller, D.C. and Schafer, W.D., 1999, Gender Differences in Risk Taking: A Meta-Analysis." Psychological Bulletin 125, p.367-383. Grable John E. (1997) Investor Risk Tolerance: Testing the Efficacy of Demographics as Differentiating and Classifying Factors Grable, J. E. and Lytton, R. H., 1999, Financial risk tolerance revisited: The development of a risk assessment instrument,” Financial Services Review 8, HM Revenues & Customs (2012) Income Tax - the basics. [online] Available at: http://www.hmrc.gov.uk/incometax/basics.htm [Accessed: 15 Nov 2012]. Hmrc.gov.uk (1990) HM Revenue & Customs: Capital Gains Tax: the basics. [online] Available at: http://www.hmrc.gov.uk/cgt/intro/basics.htm [Accessed: 15 Nov Hmrc.gov.uk (1992) CG64155 - Entrepreneurs’ Relief: shares/securities: company reorganisations Hmrc.gov.uk (2011) HM Revenue & Customs: How to calculate capital gains and losses on property Hmrc.gov.uk (2012) Entrepreneurs’ Hmrc.gov.uk (2012) HM Revenue & Customs: Personal Allowance. [online] Available at: http://www.hmrc.gov.uk/incometax/personal-allow.htm [Accessed: 16 Nov 2012]. Investopedia.com (2012) Gunslinger Portfolio Managers - Video | Investopedia. [online] Available Jianakoplos, N. and Bernasek, A., 1998, Are women more risk averse?, Economic Inquiry 36,p.620-30.