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N2 Date. The date on which the Financial Services Authority
will receive its full powers and become fully operational.
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Naked Trust. See
‘Absolute Trust’
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Name. Member of
a Lloyds syndicate who pledges security for insurance arranged
by Lloyds of London insurance underwriters.
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National Insurance
Contributions. An additional form of tax paid by
most employers, employees, self employed (and some unemployed)
people. For the employed it is deducted from income by the employer
on a scale related to income levels. The employed pay part flat
rate, part income related. The self employed and the unemployed
may pay a flat rate voluntary contribution to keep their benefits
entitlement up to date.
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National Savings.
A 'branch' of the treasury, selling investment, savings and deposit
products over the counter at post offices with the aim of raising
money for the government, and providing medium to long term financial
planning products for customers.
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National Savings Stock Register.
Register of gilts which may be purchased through the Post Office.
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Needs Analysis.
The breaking down of a situation to determine whether there are
areas of risk or weakness that should be protected.
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Negative Equity.
The situation where the value of the property falls below the
outstanding loan(s) used to purchase it.
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Negotiable. Open
to discussion and bargaining; something in which the title can
easily be transferred to another person.
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Nest Egg. Supply
of ‘emergency’ or ‘future use only’ money usually saved over a
period of time.
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Net. After all
deductions have been made.
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Net Book Value.
The written down value (after allowing for depreciation) of an
asset.
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Net Pay System.
Refers to the situation where employee contributions to an occupational
pension scheme are deducted from gross income before tax is applied.
This avoids the need to adjust the tax code.
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Net Profit. Profit
after all deductions except tax and dividends.
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Net Relevant
Earnings. A definition of 'pensionable income'
for the self employed by which Personal Pension Plan contributions
are determined. Relevant earnings less business expenses (includes
stock relief deductions, losses or capital allowances). NRE for
employed PPP holders is effectively gross PAYE pay.
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New Code. A code
of approval for new occupational pension schemes established after
the Act which was introduced by the 1970 Finance Act. Approval
for schemes currently is under the Income and Corporation Taxes
Act 1988.
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Nikkei Average.
Index of prices of certain leading shares quoted on the Tokyo
Stock Exchange.
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Nil Rate Band.
Refers to the ceiling on cumulative transfers for IHT purposes,
under which transfers do not attract tax.
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No Claims Bonus.
Reduction in premium when no claims have been made over an agreed
period.
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Nominal. Small
payment, or value
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Nominal Capital.
Total face value of authorised issuable capital.
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Nominal Ledger.
The account book showing expenditure on nominal accounts i.e.
named business accounts such as postage, printing, etc.
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Nominal Value.
The par, or face, value of something e.g. a share issue.
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Nomination. The
naming of a person to receive an award or benefit e.g. similar
to an expression of wish under a group life assurance scheme.
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Nominee. Someone
who is nominated to deal with certain matters on behalf of another
party.
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Nominee Account.
An account operated by, say, a trustee or stockbroker, which holds
shares or other property for you in the name of a trustee or nominee,
not in your name e.g. shares in a PEP are held in such an account.
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Non-Medical Limits.
Refers to underwriting limits, whereby sums assured up to certain
levels, other things being acceptable, will not require a medical
examiners report.
See 'Free cover'.
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Non-Profit. A policy
where the value of the policy at maturity is guaranteed at outset.
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Non-Qualifying Policy.
One which does not satisfy all of the qualifying rules.
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Non-Recourse. Where
finance is raised to purchase a leased asset, the lender will
have recourse to the assets held by the lessee in case of default,
but not to the lessor/borrower.
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Normal Expenditure.
An exempt lifetime transfer under IHT rules, whereby to avoid
being classified as a PET the transfer must be part of normal
expenditure and not affect the standard of living of the donor.
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Normal Retirement
Age. The expected retirement age, usually for pension
purposes, as defined in the scheme rules.
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Normal Retirement
Date. Refers to the expected or usual retirement
date assumed when setting up a pension scheme. e.g. end of the
month following 60th birthday.
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Nostro Account.
Bank account held by a UK bank with another bank abroad.
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Notary Public.
Lawyer with authority to witness written documents and verbal
statements, thus making them official. Someone who attests to
the validity of deeds and other documents for official use.
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Notional. Assumed,
unquantified, not known exactly.
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Novation. An agreement
to replace one of the original parties to a contract with a third
party.
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