IFM15200 - Investors within the charge to income tax

Investors within the charge to income tax: dividend distributions

Where an investment trust pays a dividend distribution, this is a UK dividend and investors are taxed accordingly.

Investors within the charge to income tax: interest distributions

With effect from 6 April 2017 investment trusts will pay all interest distributions gross (that is, no withholding tax will apply). Investors within the charge to income tax are liable to income tax at their marginal rate on that gross amount.

Investors within the charge to income tax: financial traders

Any dividend distribution or interest distribution received by an investor that is a financial trader within the charge to income tax is taxable as a receipt of a trade in terms of ITTOIA 2005 S366(1).

Investors within the charge to income tax: disposals

An investor within the charge to capital gains tax is taxable on any capital gains on disposal of shares in an investment trust.