National Insurance Contributions

A payment made by most employers, employees, self-employed (and some unemployed) people to the government to fund such things as national healthcare and education. The rate charged can change on a regular basis.

National Savings

This is a savings service offered by the UK Post Office network.

Negotiable Instrument

This is in simple terms a piece of paper representing ownership of a financial asset or debt, which can be traded on the open market between investors. The most common forms are Bills of Exchange, Promissory Notes, etc.

Net

This relates to a figure which is quoted after all taxes have been deducted – Net of Tax.

Net Asset Value (NAV)

This is the value of an investment fund after all assets and liabilities have been taken into account. In simple terms this is the true value of any investment fund.

Net Interest

Interest received on a savings account after basic rate tax has been deducted. Those in the higher tax bands will need to make additional payments through their tax returns.

Net Present Value (NPV)

This is a calculation which produces the current value of a future income stream. Inflation, interest rates, length of income stream and similar elements are taken into account.

Net Relevant Earnings

Net Relevant Earnings are used to determine the maximum contributions to a Retirement Annuity, Personal Pension or Stakeholder Pension.

Net Relevant Earnings are your relevant earnings less –
• allowances deductible for tax in relation to business purposes e.g. some capital allowances; stock relief (only for tax years prior to 1984/85)
• losses from business

New Issue

This is the specific issue of new shares or other investment instruments in order to raise new capital.

NICO

National Insurance Contributions Office.

Nil Rate Band

This refers to the earnings allowance on which no income tax is paid.

No Claims Bonus

This is a reward from an insurance company if you do not make a claim, resulting in lower premiums.

Nominal Value

The official face value of something e.g. a Share issue, although in reality it means very little to shareholders.

Nominee

An individual or company in whose name a security is registered to be owned, although the real (or beneficial) ownership is actually held by another party. Nominees are often referred to as custodians and are very common in the investment industry.

Non Contributory Pension

An occupational pension where the employee makes no contribution as the plan is entirely funded by the employer.

Normal Retirement Date

Refers to the date when benefits can normally be taken from a pension scheme, as defined in the rules of the plan. Please note that in some circumstances the date can be changed with the approval of the scheme trustees.

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