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An investment trust for growth?

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Comments

  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    bigadaj wrote: »
    There's no absolute requirement for an IT to pay out, it's down to discretion of management and the aims of the trust.
    .
    Well, that's not quite true, as HMRC rules say that they can only retain a maximum of 15% of their income from all sources without paying it out. And that percentage that's permitted to be retained is reduced in circumstances where they've received reportable income from offshore funds and accounted for it as capital.

    The intention is that they pay out substantially all the income they receive - that is a condition that they follow to allow them to qualify for special treatment as a tax-efficient investment trust vehicle.
  • Ainsley1
    Ainsley1 Posts: 404 Forumite
    Thanks for a lot of the input on this thread. I am a fan of ITs but this thread is helping to explain some of the finer points!
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