BUDGET '09: AIC welcomes tax breaks on investment trusts

The trade body is confident a reference to tax efficient investment for the companies into interest bearing assets means proposed regulations last year will form part of the finance bill. This would mean investment trusts will be allowed to opt out of paying tax on bond yields, provided the savings are passed on to shareholders as interest. AIC director general Daniel Godfrey says: "This is pretty much exactly what we have been pushing for so obviously we are very pleased. "I think over time it will very possibly create a whole new market for fixed interest investment trusts where the...