Ordinary shares

• Main type of share
• Generally these shares are entitled to all income and capital growth from the trust’s investments

Preference shares

• Pays a fixed dividend
• Must be paid before ordinary shares
• Has prior claim to other share classes

Split Capital shares

There are various different types of split capital shares each offering different combinations of income and capital.

• Capital Shares – Entitle holder to capital remaining on winding up of the trust, no rights to receive income
• Income Shares – The traditional income share gives a right to income with a fixed redemption price (often equal to its issue price), subject to sufficient assets remaining after repayment of debts and other preferred classes of share. However, the redemption price may be well below the current market price.
• Zero Dividend Preference Shares – Have 4 main characteristics: Limited Life, Fixed Redemption Date, Issued at an initial value and Taxed under CGT