Investment Trusts
Tax
You may make your investment decisions without recourse to financial advice. However, you may find it useful to go to a professional independent financial adviser, who will give you advice on what to invest in either via direct shareholdings, or via a regular savings scheme. If you have invested in an investment trust via a stocks and shares ISA, you will not have to pay any further tax. Income from investments held within ISAs does not have to be declared on your tax return.
If you are investing in an investment trust outside an ISA and you receive a dividend distribution, you will receive a tax voucher from the fund manager showing both the amount that you are getting and the amount of tax on the distribution that has already been paid by the manager. Dividend distributions are paid net of 10% tax.
On the sale of investment trust shares there may also be a Capital Gains Tax liability. However, an investment trust held within an ISA would be sheltered from any further tax liability.
Deciding to Invest
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