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Occupational Disease

Impairment of health caused by continued exposure to conditions inherent in a person's occupation or a disease resulting from the nature of an occupation.

Occupational Pension Board (OPB)

Statutory body which was established to oversee and supervise contracted out schemes, to ensure that Protected Rights and Guaranteed Minimum Pensions are secure.

Occupational Pension Scheme

A pension scheme set up by an employer for employees. It is run by Trustees and usually provides life insurance as well as pension benefits. The pension earned by the employees is usually based on a percentage of final salary or on the amount paid in (money purchase basis). An occupational pension can either be contributory (where members contribute to the fund) or non-contributory, which is entirely paid for by the employer.

Occupational Split

Used in relation to group insurance with reference to the occupational split of the company's workforce E.g. 50% clerical / 50% manual.

OEIC

Pronounced as "oiks", this stands for Open-Ended Investment Companies. Although not dissimilar to unit trusts and investment trusts, an OEIC is basically a company which can be self-contained or it can form an "umbrella" over a range of individual funds (sometimes referred to as sub-funds). Instead of units, an OEIC issues shares and these can be of different classes - for example, for income accumulation, for income distribution, or classes where income is paid gross or net of lower-rate income tax. Save & Prosper's New Europe Fund is an OEIC.

Off Balance Sheet

Under the right circumstances, a lender can arrange an "operating" lease which is essentially long term rent, not a "Capital Expenditure" transaction, and so "off" balance sheet.

Offer Price

The price at which you can buy a security or a unit in a unit trust.

Office Holder

Someone who occupies a particular position or office. Includes directors, judges, ministers of religion, members of parliament and so on.

Offset

To set one amount against another, such as a loss against a profit or a repayment against a liability.

Offshore Funds

Collective investment funds that are based overseas, often in 'tax havens' or other locations with particular tax advantages.

Ombudsman

An independent official to whom grievances can be aired, free of charge. Ombudsman is a Swedish word meaning citizen's representative. The Insurance Ombudsman Bureau aims to increase confidence in Insurance by offering an independent resource for resolving disputes between insurance companies and their customers.

On Balance Sheet

Any financial expenditure that shows on a company's balance sheet.

Open-Ended Investment Company (OEICs)

An investment company that works in a similar way to a unit trust except that an OEIC is a limited company. Most OEICS operate as umbrella funds, where the OEIC is authorised and can then set up multiple sub-funds without the need for individual authorisation of each sub-fund.

Opening Written Down Value

Cost of an asset at the start of the accounting period after deducting capital allowances given in earlier accounting periods. The closing written down value will be the opening written down value, less capital allowances given in the accounting period.
This will be the opening written down value for the following accounting period. Where expenditure on plant and machinery is pooled for capital allowance purposes the closing written down value will be the opening written down value brought forward, plus any additional expenditure incurred, less any disposal proceeds, less any capital allowances given, and plus any balancing charges made.

Open Market Option

An option which exists at retirement date to use the accumulated value in a pension fund as a cash amount to purchase an Annuity on the Open Market from another Insurance Company. This practice can allow an individual to secure a better Annuity Rate than may be available from the Insurance Company which has maintained the pension fund.

Operating Support

Contributions toward an organisation's day-to-day, on-going expenses, such as salaries or wages, utilities, office supplies, etc.

Opinion Status Enquiry

A reference given by a bank or building society to confirm a customer has run their account responsibly.

Opting Out

The decision by an employee to leave or not join an occupational pension scheme provided by his/her employer.

Options

an agreement to buy or sell at a specific price at a specific date in the future. There are basically two kinds of option: a call option gives its buyer the right to buy a specified number of shares at a particular price before a specified date. The opposite of a call option is a put option, which gives the buyer the right to sell a specific number of shares at a particular price within a specified time period. In practice, call and put options are rarely exercised; instead, investors buy and sell options before their expiration, trading on the rise and fall of premium prices.

Ordinarily Resident

If you are resident in the UK year after year, you are "ordinarily resident".

Ordinary Commuting

Travel between home (or some other place you attend for private reasons) and a permanent workplace.

Other Benefits (Employment)

The more common other benefits which are received in an employment are:

Relocation expenses
Subscriptions and professional fees
Assets provided for private use
Provision of nursery places (sometimes this is not taxable).

Other Income

This is a "catch all" term to ensure that you declare all your taxable income which you have not already entered anywhere else on the Tax Return.

Other Income from Land and Property

Any property income (other than rents) that you receive from any source, such as wayleaves, payments from sporting rights and so on.

Other Income from Savings and Investments (except Dividends)

Covers anything from interest on loans you have made to income from Government Stocks (Gilts).

Other Pensions

Pensions paid by anyone apart from those paid by the Government.

Other Qualifying Loan Interest

You can receive tax relief on interest paid on loans that you take out for certain specific purposes. These include loans for:

Buying shares in a close company
Purchasing an interest in a partnership or contributing partnership capital
Purchasing machinery or plant for use in your employment or partnership.

Outgoing

Monies you have to pay to someone else for things linked to your income.You may be able to deduct them from your income for tax purposes.

Overdraft

When the amount of money withdrawn from a bank account is greater than the amount actually available in the account the excess is known as an 'overdraft' and the account is said to be 'overdrawn'. If agreed in advance by the bank this is essentially a form of loan facility. If not agreed in advance by the bank penal charges may be incurred.

Overlap

A pension has a number of options available, including the following;

Pension Guarantee, which promises to pay benefits for a fixed period of time, regardless of whether or not the Pensioner survives.

Dependant's Pension, which in the event of the death of the Pensioner, provides a continuing pension income to a dependant.

Overlap is an arrangement whereby benefits from both the above options can be payable at the same time, so that in the event of the Pensioners death within the guarantee period, the Guaranteed Pension and the Dependant's Pension would both be paid.

Overlap Profit

Profit which has been taxed twice because part of an accounting period falls within the basis period for more than one year.

Overlap Relief

Tax relief that is given for overlap profits brought forward. It is given on a change of accounting date if the basis period is longer than 12 months or on the cessation of trade.

Overseas

A country other than England, Northern Ireland, Scotland and Wales.

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