Balancing allowances and Penny shares: Difference between pages

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imported>Doug Williamson
m (Tax/Pension check - spacing added 23/10/13)
 
imported>Doug Williamson
(Create page - source - FCA - https://www.fca.org.uk/consumers/penny-shares)
 
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''UK Tax''
1.  ''Investment - investment strategies - equities - listed equities.''


Capital allowances adjustments arising on the disposal of certain individual fixed assets where the sale proceeds are less than the balance of unrelieved expenditure (tax written down value).
An ordinary equity share with a very low current market price.
Balancing allowances reduce the amount of taxable profits.
 
A common threshold for classifying a share as a penny share in the UK is a maximum current market price of GBP 0.20 = 20 pence 1 per share.
 
 
Investing in such shares can be appealing to certain very naive investors, on the basis that the potential for large proportionate gains - for example a doubling of the value per share - could be considered more likely than for a stock with a higher current market price per share.
 
 
They are generally very high risk investments, and unsuitable for non-professional investors.
 
 
2.  ''Investment - investment strategies - equities.''
 
Shares in very small companies, whose shares may have a very low market value per share.




== See also ==
== See also ==
* [[Balancing charges]]
* [[Equity]]
* [[Capital allowances]]
* [[Financial Conduct Authority]] (FCA)
* [[Residue after sale]]
* [[Ordinary shares]]
* [[Tax written down value]]
* [[Penny]]
* [[Penny stock]]
* [[Preference shares]]
* [[Share]]
* [[Stock]]
 
 
==External link==
*[https://www.fca.org.uk/consumers/penny-shares Find out why you should be cautious about investing in penny shares or penny stocks - UK Financial Conduct Authority (FCA)]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Latest revision as of 16:09, 10 February 2022

1. Investment - investment strategies - equities - listed equities.

An ordinary equity share with a very low current market price.

A common threshold for classifying a share as a penny share in the UK is a maximum current market price of GBP 0.20 = 20 pence 1 per share.


Investing in such shares can be appealing to certain very naive investors, on the basis that the potential for large proportionate gains - for example a doubling of the value per share - could be considered more likely than for a stock with a higher current market price per share.


They are generally very high risk investments, and unsuitable for non-professional investors.


2. Investment - investment strategies - equities.

Shares in very small companies, whose shares may have a very low market value per share.


See also


External link