Industry welcomes consultation over new tax regime for trusts

The Government has announced a consultation into the tax regime for investment trusts, which will include rules on direct property investment.

The consultation will look to update the regulations known as Section 842. The rules define where trusts can receive the majority of their income from, 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 status if they invest in direct...