Significant fund changes

Recent changes to savings and investments tax – Gross payments and removal of ‘net’ from share class names

Recent changes to savings and investments tax – gross payments

In the March 2015 and 2016 Budget announcements, the UK Government introduced changes to the way savings and investments are taxed in the UK. As a consequence of these changes, all dividend distributions paid from our Equity Funds^ are paid gross of UK tax from 6 April 2016, and all interest distributions from Bond Funds** will be paid gross of UK tax from 6 April 2017. This is the case across our UK authorised fund range.

Please read the Gross payments – further info document in the Related Documents section for more information on these changes and how they may impact your clients.

Removal of ‘net’ from share class names

As a result of the taxation changes outlined above, we will be removing the reference to “net” from our share class names, as well as any documentation which also refers to “net”, with the intention to make this change in February 2017 (though please note Bond Fund distributions will continue to be paid net of tax until 5 April 2017).

The change to our share class names will be applied across our UK authorised fund range with the exception of the Threadneedle UK Property Authorised Investment Fund, which will retain references to both “net” and “gross” in its share class names.

^Investment funds that invest principally in stocks that pay dividend distributions.

**Investment funds that invest at least 60% in interest-bearing assets that pay interest distributions.

What funds are affected?

The taxation changes apply to all Equity Funds and Bond Funds within the Threadneedle UK regulated fund ranges. Our Luxembourg SICAV fund range is unaffected.

 

A full list of the Share Classes where ‘net’ will be removed from the name is available in the Related Documents section.

Do I need to take any action?
No action is required, however, please read the Gross payments – further info document in Related Documents which outlines the changes to UK savings and investments tax and how they affect your clients’ investments in more detail.
Further information

Further information is available in the Gross payments – further info document and the Q&A in Related Documents.

 

If you are unclear about any of the details relating to the changes, or have any further questions, please contact our Client Services Team in the UK on 0800 953 0134* (available from 8:00am to 6:00pm, Monday to Friday) or contact your financial adviser. If you are based in the UK and you do not have a financial adviser you can find one in your area at www.unbiased.co.uk**.

 

*Calls may be recorded.

**Please note we do not endorse this site or Advisers on it.

Related Documents

PDF

List of Share Classes

PDF

Gross Payments – Further information