Commentary

D8.105 Equalisation

Corporate tax
Corporate tax | Commentary

D8.105 Equalisation

Corporate tax | Commentary

D8.105 Equalisation

To enable the balance at the end of a distribution period to be allocated equally to holders of units at that time, many unit trusts operate an equalisation scheme.

Under such a scheme, when a unit is purchased part way through a distribution period, the price paid is increased by the amount of income which has accrued up to the date of purchase (an equalisation element). This element is added to the distribution account. At the end of the distribution period, the balance on the distribution account is paid to all the unit holders, so that a holder who

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