High income on the up

Article Abstract:

There is a wide range of investment trusts for UK investors seeking an income. Income trusts that from split capital trusts may have high yields, and general trusts can also be used to provide an income. Tax credits on income could be reduced if the UK Labor party is elected, but there is still likely to be strong demand for income funds. Risk levels vary according to the type of trust and investors should take advice if they plan to use a split capital trust.

Planning, Investments

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Out of the ordinary

Article Abstract:

Split capital trusts include income and residual stocks, or ordinary income stocks. These stocks can potentially offer both capital growth and high yields, though they also involve risk. Capital growth may be taken by zero stockholders, but income and residual stocks can perform well when market conditions are good. Investment managers tend to advise private clients not to put too much of their portfolios into this vehicle because of the risks involved.

Analysis, Zero coupon securities

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Taking income from capital

Article Abstract:

Equity income funds can offer an income from dividends, but investors should also consider total returns. Income can be derived from capital gains using tax allowances. The practice of using capital growth to provide an income tends not to be used by United Kingdom fund managers. There are two fund managers who offer such schemes, and they are Threadneedle and Perpetual. High yielding bonds tend not to give such good returns as equity funds.

Personal Tax Planning, Personal finance, Tax planning

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