Budget 2010: Treasury reveals investment trust tax consultation

Starting in the summer, the consultation will look to update the regulations known as Section 842. The rules define from where trusts can receive the majority of their income, which at the moment excludes direct investment in property or interest baring securities. They also insist every trust undergo an annual assessment by HMRC. AIC director general Ian Sayers says he welcomes the review. "We have been pushing for this for a while. The rules, which have been around since 1965, have done quite well, but need to be updated," he says. "Why should investment trusts lose their s...