A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Capital Gains Tax (CGT):

A tax levied on profits which arise after you sell a certain type of asset such as shares or property. The tax is levied at the same rate as income tax, so if you are a higher rate taxpayer, you will pay CGT at 40 per cent. An annual exemption applies for profits made each year. This year, (2007 - 2007) any profits of under £9,200 are free of CGT.

Capitalisation Issue:

See Scrip Issue

Child Trust Fund:

A savings account for children born on or after 1st September 2002 which cannot be accessed until they turn 18. The child receives a £250 voucher to start their account from the Government, with some children from less well-off families receiving an additional £250. On the child's 7th birthday, the Government will make a further payment of £250. Again, for families in receipt of full Child Tax Credit this will be £500. Parents can choose to invest the CTF money in a cash account or an share-based equity account.

Co-habitation Agreement:

A pre-nuptual style agreement for non-married couples or anyone choosing to buy a property with another party. The agreement states the assets owned by each party, including any relevant share of property. It can also set out what will happen in the event the relationship ends. The courts recognise these agreements as a binding statement of both parties' intentions in most disputes.

Commodities:

Metals, petroleum, and plantation crops, as well as coffee and sugar, grains and oilseeds are commodities. These are traded on a commodity exchange both by the companies that use them and by speculators. It is also possible to trade commodities futures, which involve betting on price changes in the commodity.

Consumer Price Index (CPI):

The official measure of inflation, used to set government targets. Each month the CPI tracks the percentage change in price of a sample of household goods and services. Not to be confused with the Retail Price Index (RPI), the better-known "headline rate" of inflation which includes mortgage costs.

Critical-illness cover:

Insurance against specified critical illnesses such as cancer or heart attack, or disablement. In the event of illness, the insurer will pay a lump sum to the policyholder.

Current account:

A bank account used for ongoing transactions, such as withdrawals and payments of bills, as opposed to a deposit savings account.