Read and Causer trust eyes move offshore

Paul Read and Paul Causer's £130m City Merchants High Yield trust is considering moving offshore for tax reasons, despite imminent rule changes designed to improve the competitiveness of the UK as a domicile.

Invesco Perpetual said a move offshore would ensure more tax-efficient investment returns from high yielding fixed interest securities. According to broker Winterflood, switching domicile would boost the trust’s dividend, which has declined since its merger with the Exeter Selective Assets investment trust in 2005. The merger provided the trust with £12.5m worth of tax breaks, according to reports, but these have now come to an end. Read and Causer’s trust must now meet its tax charges using revenue reserves, limiting the cash it can return to shareholders.  Broker J.P. Morgan Caze...