BUDGET '09: AIC welcomes tax breaks on investment trusts

The Association of Investment Companies says tax breaks for investment trust bond holdings in today'...

The Association of Investment Companies says tax breaks for investment trust bond holdings in today's budget could see a new market for closed ended fixed interest funds. The trade body is confident a reference to tax efficient investment for the companies into interest bearing assets means proposed regulations last year will form part of the finance bill. This would mean investment trusts will be allowed to opt out of paying tax on bond yields, provided the savings are passed on to shareholders as interest. AIC director general Daniel Godfrey says: "This is pretty much exactly what w...