Plans unveiled by the London Stock Exchange (LSE) to open up the corporate bond market to small investors on Monday 1st February have run into opposition.
Currently the minimum investment (or denomination) of a UK issued corporate bond is £50,000 or £100,000, making it the domain of larger investors and institutions, and out of the reach of the smaller investor. The only way smaller investors can gain bond exposure is through collectives such as OEICs and Life Office Funds. The LSE’s proposal is to launch a retail bonds market, which will start listing from 1st February, with denominations of about £1,000. It would appear that HMRC is looking at this new market and considering taxing individual trades. This would be contrary to the t...
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