Revenue and AITC reach agreement

The AITC has come to an agreement with the Inland Revenue to remove a potential CGT liability which has been overhanging investment trusts for the past two years, writes Adam Lewis. This comes after a year of discussions between the trade body and the Revenue and dates back to the introduction of corporation tax self-assessment (CTSA) for investment trusts in 1999. Any gains within the portfolio of an investment trust are not subject to CGT. Under section 842 of the Income and Corporation Taxes Act 1988 (ICAT 88), investment trusts have to gain approval every year from the Revenue to re...