The new year has not brought the happiest of headlines for Ground Rents Income, the investment trust Questor tipped in May last year. The Government’s announcement this month of plans to give homeowners in leasehold properties the right to extend their leases by 990 years, at zero “ground rent”, has sent shares in the fund sliding.
Investors have unsurprisingly judged the announcement not to be good news for a fund that derives its income from those very ground rent payments. The shares have fallen to 63p, 16.9pc below the 75.8p at which we tipped them. They now stand at a 41pc discount to their 106.7p net asset value.
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U.S. President-elect Joe Biden, shown here at an event in Wilmington, Del., on a recent day, could look to undo some of the 2017 tax cuts, including a potential increase on dividend taxes. Chip Somodevilla/Getty Images
For wealthy individuals, paying a higher tax rate on dividends could be in the offing under the incoming Biden administration, though it’s far from certain given all of the crosscurrents and political rancor in Washington.
Just what will happen in Washington regarding tax policy after President-elect Biden assumes office is hard to divine, and details of any plans for a dividend tax are scant. A spokeswoman for the Biden transition team referred Barron’s to a tax-policy paper on its website that calls for “those making more.
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