Many financial advisors suggest that those who receive windfalls
should take it slow.
Mr Apperley, a tax consultant with Horwath Clark Whitehill who specialises in capital taxation matters, added: "The windfall
to the private investors contrasts sharply with effective increase in the rate of tax payable by business owners as a result of this change.
This is because it results in recording windfall
tax benefits to APIC sooner than the with-and-without approach and thus provides a larger pool to offset future shortfalls.
Susan Bradley, the author of Sudden Money: Managing a Financial Windfall
, says that one challenge of newfound wealth is dealing with all the emotional issues surrounding money--including other people's unrealistic expectations.
Registering your vote is sufficient to validate your windfall
A further variable windfall
will be paid based on how long people have held their policies and how big they are.
She said the company needed to reclaim the windfalls
so that other investors would not be affected by the mistake.
of pounds 5,700 to over 1.5 million people were triggered when Scottish Widows plc was taken over by the Lloyds TSB group early last year.
It was all so different a few years ago when demutualisation was the buzz word and carpetbaggers rushed to snap up windfalls
along with long- established building society members.
CENTRICA, owner of British Gas, is to buy the Automobile Association for pounds 1.1 billion, triggering pounds 240 windfalls
for AA members, the company announced today.
In common usage, a windfall
is a "casual or unexpected acquisition or advantage," or an "unexpectedly large or unforseen profit."(2) A rare discussion in the legal literature did not stray far from the dictionary, defining a windfall
as "value which is received by a person unexpectedly as a result of good fortune rather than as a result of effort, intelligence, or the venturing of capital."(3) This definition, however, adds critical economic content to the term: It distinguishes gains due to luck from those due to effort or enterprise.
He wants capital gains tax (CGT) on windfalls
above pounds 6,000 from takeovers and income tax on cash received from mergers.