Financial Dictionary.
This is a browseable and searchable reference tool for terminology
relating to UK-based personal finance and financial products.
You can browse alphabetically, or search for a specific term.
Split Capital Investment Trust
Definition: An Investment Trust that issues different classes of shares, and usually has a fixed lifetime. At the end of the lifetime, the assets of the trust are distributed to the different classes of investorts. Typical splits are into 'income shares', 'capital shares' and 'zero dividend preference shares'. Income shares are geared to pay out high dividends, Capital Shares benefit from growth in the trust's value, and the Zero Dividend shares have their growth rolled up and paid out at the end of the trusts life. In order to check what a Zero share is likely to return at the end of its life, you need to calculate its 'hurdle rate'.
Recent Financial Topics
Chancellor Rachel Reeves' painful tax raid on businesses has pushed inflation to an 18-month high. Prices have jumped by 4.2% in a year in the UK
How much of a salary hike do YOU need to keep up with inflation? Use our calculator to find out...
27/10/2025 07:38 AM
Ultimately the markets will force a change of direction, either from this Government or more probably the next one.
HAMISH MCRAE: Footsie flies - but it's no thanks to this Government
27/10/2025 07:36 AM
Valerie is an actress and model who starred in cult Halloween classic, Blood From The Mummy's Tomb (1971). The 81-year-old also appeared in two Bond films.
Nobody got rich from Carry On films but those 70s Hai Karate adverts paid off, reveals VALERIE LEON
27/10/2025 07:35 AM