Investment Trusts
Investment Trusts are themselves companies, which invest into the shares of other companies. Similar to the Unit Trust and ISA, these are collective investment vehicles which spread investors' money accross a diversified portfolio of assets.
Investment Trusts can invest in any kind of company, whether its shares are quoted on a stock exchange or it is an unquoted, private company. Investment Trusts can provide new firms or firms that want to expand with venture capital and can invest in any country in the world.
A range of funds are available to invest into, each with a different investment objective.
In relation to tax, dividends are paid to investors with 10% tax deducted at source and basic rate taxpayers have no futher tax to pay. Higher rate taxpayers will have higher rate tax to pay on the dividends. Investors are liable to capital gains tax (CGT) on profits. However, each individual has an annual CGT exemption, currently £9,600.00. Investment Trusts are available under the wrapper of an ISA.