unit trust and oeic

celtic123

was looking at a government guide about 'trusts'. and was confused. [http: // hmrc.gov.uk/trusts/income-tax/income-types.htm

does that apply to unit trusts and oeics?

i previously thought that once you get dividends you paid the dividend tax rate of 10%,32.5 or 42.5 - ignoring the credit, depending on income bracket.

why is that webpage saying 42.5% when over a thousand.

celtic123

if i had a TER or RIY of 0.27% and the fund had a growth of 7% then 10,000 left for ten year would return just over 19000. then if it was not in an isa i would have capital gains.

thats how i normally thought it works as an eg. but that webpage has had me confused now.

Aegis

You're reading up on discretionary trusts, which are a part of UK case law that allows someone to pass property intended for beneficiaries in proportions and time frames as-yet unspecified to third parties to look after as trustees. Unit trusts and OEICs are not set up in the same way, so the tax tables you've found don't apply to them.

dunstonh

There are very many trusts. Each with their pros and cons and different handling with tax and legislation. Personal pensions are held in a trust for example.

celtic123

thanks. i suspected that. had to make sure