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  • FIRST POST
    • ADarkDividedGem
    • By ADarkDividedGem 10th Mar 18, 7:10 PM
    • 1Posts
    • 1Thanks
    ADarkDividedGem
    Investment Trusts
    • #1
    • 10th Mar 18, 7:10 PM
    Investment Trusts 10th Mar 18 at 7:10 PM
    I am wanting to sell some shares from the following companies:
    • Martin Currie Global Portfolio Trust Plc
    • Alliance Trust PLC
    • Foreign & Colonial Investment Trust PLC

    Since those companies have the word "Trust" in them I wanted to make sure that I would only be able to sell 5,650 worth of shares instead of the higher 11,300 value before I would need to pay Capital Gains Tax?

    I wanted to make sure since an "Investment Trust" is also known as a "Closed Fund" and "Investment Trust" is not listed under the types of trusts on the GOV.UK website.

    Thanks
    Last edited by ADarkDividedGem; 10-03-2018 at 7:19 PM.
Page 1
    • Economic
    • By Economic 10th Mar 18, 7:36 PM
    • 249 Posts
    • 227 Thanks
    Economic
    • #2
    • 10th Mar 18, 7:36 PM
    • #2
    • 10th Mar 18, 7:36 PM
    For capital gains tax, investment trusts are the treated the same as any other ordinary shares. It is the gain that matters for CGT not the value of the shares sold so you can make a gain of 11,300 before paying CGT.
    • AnotherJoe
    • By AnotherJoe 10th Mar 18, 7:51 PM
    • 9,446 Posts
    • 10,448 Thanks
    AnotherJoe
    • #3
    • 10th Mar 18, 7:51 PM
    • #3
    • 10th Mar 18, 7:51 PM
    You seem to have got completely the wrong end of the stick when it comes to ?buying? and certainly selling shares.
    Where does the figure of 5,650 come from? (Other than being half of 11,300 obviously)

    As economic says, you can make a gain of 11,300 not just a sale before there is any tax.
    • Alexland
    • By Alexland 10th Mar 18, 8:08 PM
    • 2,389 Posts
    • 1,791 Thanks
    Alexland
    • #4
    • 10th Mar 18, 8:08 PM
    • #4
    • 10th Mar 18, 8:08 PM
    Also if you bought them in an ISA wrapper you don't need to worry at all.
    • Heedtheadvice
    • By Heedtheadvice 10th Mar 18, 8:22 PM
    • 815 Posts
    • 380 Thanks
    Heedtheadvice
    • #5
    • 10th Mar 18, 8:22 PM
    • #5
    • 10th Mar 18, 8:22 PM
    "Investment trust" is really in practice just the collective name for the group of investment companies otherwise generally known as closed funds.

    They are investment companies so your purchase and sale is of shares in those companies.

    You are (presumably) an individual and any profit or loss you make in any particular tax year is subject to the capital gains rules i.e. losses can be offset against gains and any gain over 11,300 (in this tax year) would be subject to capital gains tax -unless as mentioned above you hold them in a tax exempt wrapper such as a S&S ISA.

    Now if you were part of a trust then that trust, run by trustees, only has half the CGT exemption level, hence just over the 5k you mention.
    That type of trust, run purely for it's beneficiaries, is not the same as an investment of shares in a closed ended fund called an Investment Trust - that often have that " investment trust " as part of the company name. They are still quoted companies with share capital subject to company law rather than Trust law.
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