Unit trusts

Investments

Unit trusts

• Unit trusts trade in shares, fixed interest securities and bonds on behalf of investors, who buy individual units that reflect the value of the assets purchased
• Dealings within the fund are exempt from capital gains tax and the collective size of the fund means that a wide range of shares and other assets can be purchased to reduce risk
• A choice of over 1,400 different funds to choose from a variety of different groups, including banks, insurance companies and investment companies
• You are liable to tax on income paid by the funds, and also capital gains tax on the rise in the value of the units. However, most investors do not fully utilise their annual capital gains tax exemption