Financial Jargon Buster - T
- Tax credit
- The amount which an ISA manager can
reclaim from the Inland Revenue in respect of share dividends received. This is
10% of the amount received until April 2004, when it will no longer be
available.
- Tax Exempt Organisation
- A nonprofit or not-for-profit,
charitable organisation which, because it engages in charitable activities,
does not have to pay taxes. An organisation must submit evidence of its
charitable work and fulfil other requirements to receive tax-exempt
tatus.
- Temporary Absence
- A period during which a member of a
group insurance scheme can be away from work and continue to be covered by the
insurance.
- Term
- The period of time for which a policy
or bond is issued.
- Term Insurance
- Provides a lump sum on the death of the
life or lives assured during a specified period of time (term). If no death
occurs during the term, then the policy will lapse, with no redemption
value.
- Terminal Bonus
- Additional bonus which may be paid when
a claim arises under a with-profit policy, either at maturity or on death of
the policyholder.
- TESSA
- Tax-Exempt Special Savings Accounts
(TESSAs) are five-year savings accounts that do not incur tax charges on the
interest paid. It has not been possible to open a new TESSA account since April
1999. However, TESSAs in existence before that date can continue up to the end
of their 5-year term.
- Testate
- A term signifying one who has made a
valid Will.
- The Fed
- abbreviation for the United States
Federal Reserve Bank, America's central bank and its equivalent to the Bank of
England.
- Third Party
- Someone other than the policyholder or
insurer who is involved in an insurance claim.
- Title
- A legal right or document proving legal
right.
- Title Deed
- This is the legal document that not
only identifies the owner of a property but also other details about the
property and the land it is built upon. This will be kept by the lender until
your borrowing and interest on that borrowing has been repaid.
- Total Borrowing
- the total amount you've actually
borrowed on your account. Your Total Borrowing = Agreed/Total Facility -
Additional Borrowing.
- Total Disability
- Inability to undertake either
occupational duties or aspects of normal day to day life. In an insurance
policy providing cover against this contingency the definition applying to that
contract is normally spelled out in detail. The exact definition may vary
considerably between policies.
- Total Return
- the combination of capital growth and
reinvested income at the end of any given period. Total return performance
figures are always stated on an offer-to-bid price basis.
- Transfer Value
- Instead of receiving a preserved
pension when leaving an occupational pension scheme, a member has the right to
transfer its value to a scheme operated by a new employer or a personal pension
plan. The transfer value is the amount that is transferred. (N.B. An
occupational pension scheme is not bound to accept a transfer value)
- Trust
- A legal arrangement whereby assets are
held by one or more appointed persons (trustees) for the benefit of others
(beneficiaries). Normally a trust is established by a legal document known as a
Deed but a trust may be established by other means. Use of a trust can be an
effective way of reducing one's liability for tax. This is a complex area of
law and specialist legal advice should normally be sought by anyone dealing
with a trust.
The concept of a trust is not recognised in all legal systems.
- Trust Deed
- A legal document which establishes and
governs the operation of a trust.
- Trustee
- (1) A board member of a foundation.
Trustees are responsible for setting foundation policy and making fund
decisions. (2) An individual or corporation named or appointed to administer
the terms of a trust document.
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