IFM14110 - Taxation of investment trusts - Introduction: What are investment trusts?
Investment trusts are a type of collective investment vehicle. They are constituted as limited companies with a fixed capital structure (and are therefore 바카라 사이트榗losed-ended바카라 사이트�) and are incorporated under company law. The term 바카라 사이트榠nvestment trust바카라 사이트� dates back to the time when such vehicles were constituted as trusts, but all such vehicles consequently converted to limited companies and they are therefore not trusts in any legal sense.
Investment trusts are pooled, risk-spreading investment vehicles that invest in a broad range of shares, securities and other assets and use professional managers to manage their investments. They aim to provide income, capital growth or a combination of both for their investors. Buying shares in investment trusts is intended to offer investors one way to diversify their portfolios, spread risk and gain access to this professional management.
Investment trusts generally draw up their Financial Statements in accordance with the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts (the 바카라 사이트淎IC SORP바카라 사이트�), as modified, amended and revised from time to time. The latest version of the AIC SORP was issued November 2014, and updated in February 2018.
As limited companies, investment trusts are within the charge to Corporation Tax. Investment trust companies which have been approved by HMRC (see IFM14120) are exempt from Corporation Tax on their capital gains. Investment trusts are not required to have a senior accounting officer or to have a tax strategy.