Split cap compensation can be reinvested in Isas or Peps

Any compensation paid from the split capital trust settlement between the FSA and 18 management hous...

Any compensation paid from the split capital trust settlement between the FSA and 18 management houses can be retained in existing Pep or Isa accounts, the Inland Revenue has confirmed. Tens of thousands of investors are expected to receive a share of the £194m fund agreed on Christmas Eve as compensation for the collapse in share prices of many split capital trusts following the post-Millennium bear market. This led to large losses for shareholders in splits and associated products such as funds of zeros. Many trusts, particularly those with high bank gearing, wound up under the pressu...