From April next year it will no longer be possible to claim 10% dividend credit for shares held in an ISA.
The weekend papers seem to disagree on whether distribution funds (with a 60% bond/40% share split) are tax efficient in an ISA or not.
-- The FT (Saturday 22nd November, page M28) says "Claims that distribution funds will offer tax advantages over equity-only funds are wrong" (written by Pauline Skypala).
-- The Independent on Sunday (23rd November, page 11 in the Money section) says "But ISAs where at least 60 per cent of the fund is invested in bonds will be eligible for a 20 per cent tax credit" (written by Sam Dunn).
Who is right? I would like to believe the IoS, but suspect the FT is more reliable in their financial reporting.
Melvin Anderson.