Tax changes could boost closed-ended fixed interest market

Budget proposals for tax relief on bond holdings in investment trusts could spark a new market of cl...

Budget proposals for tax relief on bond holdings in investment trusts could spark a new market of closed-ended fixed interest funds. From 1 September, investment trust companies will be able to invest tax efficiently into fixed interest holdings. Senior investment figures have welcomed the move, however they will hold off on pouring money into the asset class. This would allow investment trusts to opt out of paying tax on bond yields, provided the savings are passed on to shareholders as interest. Miton's Nick Greenwood and Invesco Perpetual's Andrew Watkins, in addition to the Asso...