Budget 2016: Chancellor gives boost to bond fund investors

From April 2017, bond fund managers will stop automatically collecting 20% tax from their income payments to investors. In today's Budget, the Treasury announced: "Automatic deduction of savings income tax - the government will change the tax rules so that interest from OEICs, authorised unit trusts, investment trust companies and peer-to-peer loans may be paid without deduction of income tax from April 2017." The measure is being introduced to help bond fund investors enjoy the new personal savings allowance, and will "radically simplify" the tax regime for bond funds. Investment ...