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Finsbury Growth & Income latest trust aiming to beat 50% tax ruling
by Matthew Goodburn on Feb 19, 2010 at 12:44
Finsbury Growth & Income (Ordinary Share) investment trust (FGIT) has joined a growing list of closed ended funds looking to issue dividends before the new 50% higher rate of tax is introduced on 5 April.
The trust has announced it will bring forward the first unchanged interim dividend of 4.4p per share into the current tax year to be paid on 1 April to shareholders who were registered on 5 March, with the associated ex dividend date set for 3 March 2010.
FGIT joins Caledonia Investments (Ordinary Share) , Fidelity European Values (Ordinary Share) , Murray Income Trust (Ordinary Share) and HgCapital Trust (Ordinary Share) in bringing forward dividend dates to beat the 50% tax implementation for people earning over £150,000 per year.
A statement put out on behalf of the trust from Frostrow Capital said that in line with the chairman's previous comments revenue for the year to 30 September 2010 might be insufficient to cover an unchanged total dividend.
It added: 'This is proving to be the case. The company has distributable reserves, and the board has resolved to use some of these to make up part of the shortfall.
The note said that the ex dividend date for the expected second interim dividend of 4.4p per share would be paid out on 29 September 2010 with an associated record date of 1 October 2010.
The statement continued: 'The company estimates that this level of distribution is sustainable, but should the companies in the portfolio become more cautious when deciding their own dividends, the company would have to re-evaluate.
A total dividend for the year ending 30 September 2010 of 8.8p per share represents a reduction of 7.4% when compared to the 9.5p per share paid in the previous year.
It represents a yield of 3.67% againsgt the trust's share price of 240p, just ahead of the current FTSE All-Share yield of 3.41%.
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- Finsbury Growth & Income (Ordinary Share)
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- Murray Income Trust (Ordinary Share)
- Fidelity European Values (Ordinary Share)
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