Savings for closed-end industry

Investment trusts and non-life pension funds managed on an outsourced basis will see their costs fall as a result of tax-exemptions outlined in the pre-Budget report. For the investment trust industry alone, the AITC believes an extension of a VAT exemption on management fees, which currently only applies to life funds, unit trusts and Oeics, will equate to a £30m annual saving for the closed-end industry. Self-managed trusts such as the Scottish Investment Trust are not be effected by the proposed changes as they pay no external management fees. The Sandler Review, published ea...