Removing tax distortions impacting IT bond funds

investment trusts

The AITC calls for a level tax playing field to enable IT companies to compete with unit trusts and Oeics and to enjoy the same investment flexibility

The AITC is pushing for the introduction of investment trust (IT) bond funds, an asset class that the structure of ITs makes it difficult to gain exposure to due to the way in which the current tax regime works. In a budget submission, the AITC outlined its rationale for why IT bond funds are appropriate and how the Government can develop these vehicles in its next Finance Bill. The following is the AITC's argument for levelling the tax playing field: The Government should reform the way in which bond income received by investment trust companies (ITCs) is taxed to make their position equ...