Managers with stake in trusts face big tax hike

Managers of investment trusts who also sit on the board of those trusts will face a higher tax charge on any of their own money invested in their portfolios under FSA proposals. The FSA's consultation paper 164, issued in January this year, aims to remove members of fund management companies from the board of their investment trusts. This creates an issue for small boutique investment management houses, which have often been set up to run a single investment trust and where the managers have much of their wealth in the vehicle. At present, managers who sit as a director of the trust qua...