Jargon Buster
B
Base rate
The interest set by the Bank of England on which other banks base their rates.
Basic Rate Tax
The income tax paid on taxable income above a certain figure, currently 20%.
Basic State Pension
The single person's flat rate State pension paid when you reach state pension age (60 for women, 65 for men, although set to increase to 65 for women by 2020) if you have paid sufficient National Insurance contributions during your working life.
Bid-offer spread
The difference between the prices at which you buy units and sell them back.
Bid price
The price at which you sell units in a unit trust back to the investment manager.
Bonus
An extra payment that with-profits policyholders may have added to their contract depending on the profits the company makes in any one year, or over a period of years.
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