The Lemon Fool

Does anyone know how NSI manages to be an Investment Trust (with capital gains tax exception)?

Mr. John Duffield, deputy chairman and senior partner with the managers, has 59% of the shares, so surely it is a close company and ITs can't be close companies.
(it is also, incidentally, on a discount of -35.48% )

For a definition of an IT:
https://www.gov.uk/hmrc-internal-manual ... l/ctm47200

1. An Investment Trust must not be a close company (CTM60060).
2. A close company is one where:
More than half the assets of which would be distributed to five or fewer participators, or to participators who are directors, in the event of the winding up of the company - see CTM60320.

I haven't looked at the annual report but could the shares be held by a family trust? Or the Duffield family? Maybe they don't carry voting rights associated with just one individual.

I can't get hold of the report right now, but its an interesting question, Rooky.

It's an Investment Trust, in the "Flexible Investment" sector, and is domiciled in the UK:

http://citywire.co.uk/money/investment- ... undID=3114

http://www.hl.co.uk/shares/shares-searc ... rdinary-1p

Report & Accounts for 2016:
http://www.fundslibrary.co.uk/FundsLibr ... _documents

The last full report gives:

At 30th June 2016 and 12th September 2016, the Company was aware of the following interests
which represent 3% or more of the voting rights in the Company:

% of voting rights % of voting rights
Shareholder 30th June 2016 12th September 2016
J L Duffield 59.14 59.14
Rathbone Investment Management Ltd* 5.44 5.47
M R L Astor 3.94 3.94
Miton Asset Management Ltd 3.80 3.80
Armstrong Investments Ltd 3.30 2.25

no mention of a family trust.

richfool wrote:It's an Investment Trust, in the "Flexible Investment" sector, and is domiciled in the UK:

http://citywire.co.uk/money/investment- ... undID=3114

http://www.hl.co.uk/shares/shares-searc ... rdinary-1p

Report & Accounts for 2016:
http://www.fundslibrary.co.uk/FundsLibr ... _documents

Yes, the issue is why it is allowed when Duffield the Chairman owns 59% of the shares.

The answer, perhaps, is that a quoted company in which at least 35% of the voting power is held by the 'public' cannot be a close company. CTM60310