Investment Notes
By CUSTOS
rrt LIE relief felt on the Stock Exchange at the
absence of any increase in direct or indirect taxation and in the fixing of corporation tax at do more than the expected 40 per cent was tempered by the uncertainty created by the novel
boomed, employment tax. While motor shares &lomed, the equities of banks, insurance corn- Danies, stores and other service and distributive trades fell. This will have a depressing effect on Most investment portfolios, for the shares of motor and other engineering-exporting companies ego not figure largely in conservatively managed fists. The gilt-edged market did not respond as much as I expected. The reduction in the capital gains tax to 30 per cent for life assurance com- panies—to put them on the same footing as unit trusts and investment trusts—should encourage more gilt-edged switching. The fact that the Chancellor did not tamper with the `tax-free'
zones is another bullish point for gilt-edged, especially for Exchequer 5 per cent 1967.
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