IMA outlines distribution fund position

taxation

The IMA has written to its members to ensure product providers market distribution funds appropriate...

The IMA has written to its members to ensure product providers market distribution funds appropriately and understand the tax position of such vehicles. The move comes as Invesco Perpetual becomes the latest group to plan such a product, to be run by Neil Woodford and bond managers Paul Causer and Paul Read. The abolition of the 10% tax credit on UK equity Isa distributions from 6 April next year has led a number of groups to stress the tax efficiency of distribution funds after this date. This is because the ability to reclaim the 20% tax on interest distributed will remain unchanged for...