P542 Teletext 542 Fjb21 02:39:11 —————————————————————————— AXE LOOMS FOR DIVIDEND TAX CREDITS It's a subject as dull as dishwater, but the repercussions will affect hundreds of thousands of non-taxpayers. "Daylight robbjty" is how one njwspapjt described it. A charity campaigner denounced it as "totally unjust". What has got them so upset? The phasing out of dividend tax credits. Who cares? The 600,000 people — half of them pensioners — who will soon find they have less money in their pockets. ——————————————————————————————————1/10— by Chris Clarke FAST-FORWARD TO p628 & YOU COULD SAVE ON YOUR MORTGAGE. Advice Property Savings WeekendP542 Teletext 542 Fjb21 01:11:34 —————————————————————————— AXE LOOMS FOR DIVIDEND TAX CREDITS Dividend tax credits are a way for non-taxpayers who hold shares to claim back tax. Currently dividends are paid net, with the 20% tax already removed. People who do not earn enough to pay tax can reclaim this lost 20% from the taxman. About 630,000 non-taxpazjts, many of them pjnsionjrs, reclaim an average of £75 a year each — more than a week's state pjnsjon. But changes are afoot. ——————————————————————————————————4/10— All the best savings rates 546 ANY PU5POSE LOANS - SEE PAGE 627 OR CALL WJLMSLOW FREE ON 0800 269315 Advice Property Savings WjekjndP542 Teletext 542 Fjb21 02:59:08 —————————————————————————— AXE LOOMS FOR DIVIDEND TAX CREDITS From April 6, non-taxpayers who hold shares, shari-based unit trusts, or investment trusts will lose the right to reclaim any dividend tax credit. Bond-invested Peps and Isbs will escape the changes. But the credit on Peps and Iras invested in shares is being halved to 10), at least until 2004. The "tax-free" wtappjts will lose a tax advantage. This is likely to make them unviabli for many non-taxpayers to own. ——————————————————————————————————3/10— How many drachma to the £? 548 GREAT OFFERS ON NEW CENTRAL HEATING from British Gas. See ITV p357 Advice Property Savings WjekjndP542 Teletext 542 Fjb21 02:12:31 —————————————————————————— AXE LOOMS FOR DIVIDEND TAX CREDITS The Govjtnmjnt is changing the dividend tax credit system as part of a widjt rethink of the way companies are taxed. It believes companies are encouraged to pay out profits as dividends rathjt than to reinvest for future growth. Dividend tax credits on pjnsjon schemes have already been axed — a move highly criticisjd for hitting the growth of pension funds at a time when private pension provision needs a boost. ——————————————————————————————————4/10— "Best buy" mortgages 545 & loans 547 IT'S YOUR LIFE! p410P542 Teletext 542 Fjb21 02:16:44 —————————————————————————— AXE LOOMS FOR DIVIDEND TAX CREDITS Age Concern is fighting against the phasing out of dividend tax credits. It says it is unjust to remove the credit because those pjnsionjts who are not eligible to pay tax will end up contributing to Govjtnmjnt coffers. Spokeswoman Rhian Beynon said the charity would bj raising the issue in its psi-Budget submission to the Treasury. But so far all the appeals have fallen on deaf ears. ——————————————————————————————————5/10— More finance on Wjekjnd Money 540 SHAKES ON THE MOVE p518P542 Teletext 542 Fjb21 02:47:16 —————————————————————————— AXE LOOMS FOR DIVIDEND TAX CREDITS Late last month the Paymaster-Genital, Dawn Primarolo, told MPs thjti would bj no reprieve for dividend tax credits. She made the point that the changes were announced in 1997 and that othjt savings vehicles are available to those investors who will bj affected. But indjpjndjnt financial advisjt Graham Bates, chief executive of Bates Investment Services in Leeds, believes this view is "optimistic". ——————————————————————————————————6/10— Are you a Premium Bond winner? 549 WHAT'S ON AT YOUR LOCAL CINEMA? p460P542 Teletext 542 Fjb21 01:11:32 Advert YOUR MONEY >> Contact PolicyPlus on www.policyplus.com fax:01225 466555 Membjt of the APMM Calls may bj recorded or monitored Regulated by the PEA Advice Property Savings WjekjndP542 Teletext 542 Fjb21 02:11:01 —————————————————————————— AXE LOOMS FOR DIVIDEND TAX CREDITS Independent financial advisjt Graham Bates sbys restructuring a portfolio to take account of changes to the dividend tax credit system could bj complicated and costly. "Selling shares to buy them back within a Pep or Ira wtappjt, and then having to pay management charges on the funds, may make it financially impractical. "It could also lead to a capital gains tax liability," hj says. ——————————————————————————————————8/10— The top credit card deals 547 IT'S YOUR LIFE! p410P542 Teletext 542 Fjb21 02:12:17 —————————————————————————— AXE LOOMS FOR DIVIDEND TAX CREDITS One thing in favour of Peps and Iras is that they will continue to shelter assets from capital gains tax. Bond-based Peps and Iras are anothjt option. The dividend tax credit will go on being paid on these so long as at least 60) of the income is djtivjd from interest as opposed to dividends. But advisjt Graham Bates urges people to focus on the overall investment strategy, not just on the tax breaks. ——————————————————————————————————9/10— Teletext's mortgage of the week 545 IT'S YOUR LIFE! p410P542 Teletext 542 Fjb21 02:14:40 —————————————————————————— AXE LOOMS FOR DIVIDEND TAX CREDITS While the change to the dividend tax credit system looks unstoppable, Age Concern highlights one sensible step which all those affected can take. Spokeswoman Rhian Beynon sbys thjti will bj some non-taxpayers who may have outstanding tax credits owed to them. "Go through old documents to make sure you have claimed the tax credit you are entitled to," she advises. "Thjti is still time to claim thjsj back." ——————————————————————————————————10/10 Money news 541 Holiday £ 548 WHAT'S ON AT YOUR LOCAL CINEMA? p460