"My name is bond, investment trust bond"

These discriminatory rules include differences in tax rates and ‘status’ affecting payouts of income to investors, and help explain why just 2% of investment trusts’ £58bn of funds under management are in bonds. For example, whereas investment trust funds pay a corporate tax rate of 30% on income from bonds, unit trusts and Oeics pay just 20%, meaning investment trusts must outperform by 10% just to keep up. And whereas a unit trust investing 60% or more in bonds gains a bond fund status enabling it to pay out income as tax deductable interest rather than a dividend, an investment tru...