Financial Services Secretary Lord Myners has hinted tax breaks for investment trusts holding bonds will be announced in tomorrow's Budget.
Currently investment trusts are taxed at 30% on income from bond holdings, compared to 20% on most unit trusts or Oeics, which also pay nothing if more than 60% of portfolios are in bonds. Addressing the Association of Investment Companies' annual conference in London today, Myners said the Government intended to use the Finance Bill 2009 to make changes to the tax investment trusts pay on their bond income. Myners said: "Of course I cannot pre-empt budget announcements but the consultation document stated that, subject to the responses, the Government intends to include powers in the Fin...
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