| PIBS are shares issued by building societies that pay a fixed rate of interest rather than a dividend. For the building societies concerned, they are a way of raising money without demutualising. As an investor, the rate of interest you receive will be the rate in effect at the time you bought your shares. Even though the rate on the PIBS may change, your income will always be the same. Although PIBS are safe in the sense that there is a quantifiable, regular and certain income, there is a risk of capital erosion if the share price falls below the price you paid. If PIBS make a capital gain, there is no CGT to pay.
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