Capital Gains Tax (CGT)
Tax payable on gains, for example profit on investments or a second property. CGT is only payable on gains which have been sold in that Tax Year on profits over the annual exemption. The annual exemption currently stands at £8200 for individuals and £4100 for trusts (Tax Year 04/05). Further relief may be possible through taper relief and indexation. Individuals net gains are treated as the top slice of the individuals taxable income and are taxed accordingly.

Unit Trusts
These are a collection of shares known as a fund, normally between 50 - 80 different shares, which are expertly managed by a fund manager. Individuals purchase units in the fund (collection of shares). The units have a bid price which fluctuates up or down depending on the funds performance. One company can have several different funds.

Bid Price
The bid price is the cost of each unit within the fund.

Unit Linked Funds
A collection of shares within a fund which is managed by a fund manager. The shares within each fund usually have a common factor, for example all the shares in the fund may be for Technology and Telecom companies or they may all be shares in US companies.

With Profits Funds
With Profit Funds perform based upon the financial strength and profit of the Insurance company the individuals policy is held through.

Investment Trusts
This is the oldest form of pooled investment. An Investment Trust is a public limited company which invests in other companies to make profits for their own shareholders.

Guaranteed Growth Bond
This is an investment which guarantees a set level of growth over a set number of years providing the stock market it is linked to grows by a certain percentage over that time period.