Difficulties of reinvesting income in approved funds

In my column in the April edition, I highlighted a potential pitfall with fund withdrawal schemes. This article continues the theme. In that article, I highlighted the fact that it is not possible to set up a capital withdrawal scheme using direct holdings in qualifying funds where the annual income can be determined with certainty. This is due to the fact the investor has no control over the dividend yield. There will always be an element of income return within the total return and, in some years, may be the only return on the fund. In actual fact, it may be possible to set up a ...