Mixed funds fail to take off

lower risk equity and bond income funds will retain isa and pep tax credits from april 2004

UK Equity & Bond Income funds are failing to attract investors despite the fact they will retain tax credits which will no longer be available to equity-only Isas from April 2004. Currently, all equity dividends are taxed at 20%, with Isa and Pep managers able to reclaim half of that. The Chancellor has plans in place to get rid of this 10% tax benefit on all equity based Isas and Peps in April 2004. Investors will be able to hold onto their Isa tax advantage and still have exposure to equity markets post-April 2004, provided their Isa fund retains at least 60% allocation in fixed inte...