An investment trust<b> </b>is a company domiciled in the UK.  (see <a href="https://quoteddata.com/wp-admin/post.php?post=1129&amp;action=edit">Investment Company </a> )

Investment trusts must:
<ul>
 	<li>invest in <a title="Shares" href="https://quoteddata.com/glossary/shares/">shares</a>, land or other assets with the aim of spreading investment risk,</li>
 	<li>the company’s shares must be admitted to trading on a regulated market and</li>
 	<li>it cannot be a <a title="Venture Capital Trust" href="https://quoteddata.com/glossary/venture-capital-trust/">Venture Capital Trust </a>or a <a title="Real Estate Investment Trust" href="https://quoteddata.com/glossary/real-estate-investment-trust/">Real Estate Investment Trust </a>(as these types of companies are covered by other rules).</li>
</ul>
Additionally:
<ul>
 	<li>the company cannot be a “<a title="Close company" href="https://quoteddata.com/glossary/close-company/">close company</a>” – that is to say that at least 35% of the voting shares must be held by the public</li>
 	<li>the company must distribute the majority of its <a title="Income" href="https://quoteddata.com/glossary/income/">income</a> and not retain any more than 15% of it (the old rules said the maximum retention was 15% of income from shares and securities) – there’s a minimum income threshold of £30,000 below which the company does not have to bother making a distribution.</li>
 	<li>the company has to notify changes of investment policy to HMRC</li>
</ul>