1 ACCOUNTING POLICIES (continued) Revenue reserve

This reserve includes net revenue recognised in the revenue column of the Statement of Comprehensive Income. This reserve is distributable. Capital redemption reserve

This reserve represents the cancellation of the C shares when they were converted into Ordinary shares and deferred shares. This reserve is not distributable. Taxation

There is no charge to UK income tax as the Group's allowable expenses exceed its taxable income. Deferred tax assets in respect of unrelieved excess expenses are not recognised as it is unlikely that the Group will generate suf?cient taxable income in the future to utilise these expenses. Deferred tax is not provided on capital gains and losses because the Company meets the conditions for approval as an investment trust company. Dividends payable to shareholders

Dividends to shareholders are recognised as a liability in the period in which they are paid or approved in general meetings and are taken to the Statement of Changes in Net Equity. Dividends declared and approved by the Group after the Balance Sheet date have not been recognised as a liability of the Group at the Balance Sheet date.


 
2               INCOME                                                2020 
                                               2021 
                                               GBP'000                  GBP'000 
Income from listed investments 
UK dividend income                             1,381                  2,069 
Overseas dividend income                       233                    238 
Property income distributions                      94                 107 
Total income                                       1,708              2,414 
Total income comprises entirely of dividends. 
 
3               INVESTMENT MANAGEMENT FEE      2021 2020 
Revenue Capital                                     Total Revenue Capital Total 
GBP'000 GBP'000                                         GBP'000 GBP'000   GBP'000 GBP'000 
 

Investment management fee 124 372 496 135 407 542

At 30 April 2021 there were amounts outstanding of GBP86,000 (2020: GBP58,000). 4


 
OTHER EXPENSES                                    2020 
                                     2021 
                                     GBP'000        GBP'000 
Administration and secretarial fees  64           64 
Directors' remuneration (note 5) 
                                     58           59 
Auditors renumeration: 
audit services*                      22           21 
non-audit services*                  -            (1) 
Insurance                            3            3 
Other expenses*                              143         137 
                                     290          283 
Subsidiary operating costs                   (10)         (13) 
                                             280  270 

* The above amounts include irrecoverable VAT where applicable. 5 DIRECTORS' REMUNERATION


                                                       2021        2020 
 
                                                       GBP           GBP 
Directors' fees                                        57,500      57,500 
Social security costs                                          297       1,361 
                                                            57,797      58,861 
 
 
Remuneration to Directors 
                                                                   20,000 
Lord Lamont (Chairman)                                 20,000 
H Myles                                                20,000      20,000 
W van Heesewijk*                                       -           - 
A Watkins                                                   17,500      17,500 
                                                            57,500 57,500 
* Mr van Heesewijk has waived his entitlement to fees.  6. FINANCE COSTS 

Appropriations in respect of

2021 2020

Revenue Capital Total Revenue Capital Total

GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000

Zero Dividend Preference shares - 630 630 - 607 607

- 630 630 - 607 607 7 TAXATION Based on the revenue return for the year

2021 2020

GBP'000 GBP'000

Overseas tax 27 38

27 38

The current tax charge for the year is lower than the standard rate of corporation tax in the UK of 19% to 30 April 2021 and 30 April 2020. The differences are explained below:

2021 2020

Revenue Capital Total Revenue Capital Total

GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Return on ordinary activities before

taxation 1,304 22,098 23,402 2,009 (18,073) (16,064)


Theoretical corporation tax at 19% (2020: 19%) 248   4,198 4,446     382   (3,434) (3,052) 
Effects of: 
                                                                     -     3,354   3,354 
Capital items not taxable                      -     (4,271) (4,271) 
UK and overseas dividends which are 
not liable to UK corporation tax               (307) - (307)         (438) -       (438) 

Excess expenses in the year 59 73 132 56 80 136

Overseas tax 27 - 27 38 - 38

Actual current tax charged to the

revenue account 27 - 27 38 - 38

The Group has unrelieved excess expenses of GBP23,268,308 (2020: GBP22,576,227). It is unlikely that the Group will generate suf?cient taxable pro?ts in the future to utilise these expenses and therefore no deferred tax asset has been recognised. 8 RETURN PER SHARE Ordinary shares

Revenue return per Ordinary share is based on revenue on ordinary activities after taxation of GBP1,277,000 (2020: GBP1,971,000) and on 20,850,000 (2020: 20,850,000) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year.

Capital return per Ordinary share is based on the capital pro?t of GBP22,098,000 (2020: loss of

GBP18,073,000) and on 20,850,000 (2020: 20,850,000) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. Zero Dividend Preference shares

Capital return per Zero Dividend Preference share 2025 is based on allocations from the Company of

GBP630,000 (2020: GBP607,000) and on 14,500,000 (2020: 14,500,000) Zero Dividend Preference shares 2025, being the weighted average number of Zero Dividend Preference shares in issue during the year 9 DIVIDENDS Declared and paid per Ordinary share

Fourth interim dividend for the year ended 2021 2020

GBP'000 GBP'000

30 April 2020 of 2.40p (2019: 2.40p) 500 500

Special dividend for the year ended

30 April 2020 of nil (2019: 2.50p) - 521

Fourth interim dividend for the year ended

30 April 2021 of 2.50p (2020: 2.40p) 521 500

Special Dividend for the year ended

30 April 2021 of 0.272p (2020: nil) 57 -

578 500

All dividends are paid from Revenue Reserve.

* Dividend paid subsequent to the year end. 10 INVESTMENTS - Group and Company

2021


                                                               Listed   AIM     Total 
 
                                                               GBP'000    GBP'000   GBP'000 
Year ended 30 April 2021 
Opening book cost                                              42,746   22,319  65,065 
Opening investment holding losses                              (18,359) (6,118) (24,477) 
 
 
                                                               24,387   16,201  40,588 
 
Investments transferred between Listed and AIM during the year (2,418)  2,418   - 
Movements in the year: 
Purchases at cost                                              3,534    5,732   9,266 
Disposals: 
Proceeds                                                       (6,977)  (3,219) (10,196) 
Net realised gains on disposals                                459      633     1,092 
Decrease in investment holding losses                          14,788   7,230   22,018 
Closing valuation                                              33,773   28,995  62,768 
Closing book cost                                              37,344   27,884  65,228 
Closing investment holding (losses)/gains                      (3,571)  1,111   (2,460) 
                                                               33,773   28,995  62,768 
 
Realised gains on disposals 
                                                               459      633     1,092 
Decrease in investment holding losses                          14,788   7,230   22,018 
 
Gains on investments                                           15,247   7,863   23,110 
 
10 INVESTMENTS - Group and Company (continued) 
                                                                2020 
                                               Listed   AIM     Total 
                                               GBP'000    GBP'000   GBP'000 
Year ended 30 April 2020 
Opening book cost                              43,913   23,023  66,936 
Opening investment holding (losses)/gains      (7,238)  197     (7,041) 
Opening valuation                              36,675   23,220  59,895 
 
Movements in the year: Purchases at cost 
                                               5,906    2,145   8,051 
Disposals: 
Proceeds                                       (5,712)  (4,600) (10,312) 
Net realised (losses)/gains on disposals       (1,361)  1,751   390 
Increase in investment holding (losses)/gains  (11,121) (6,315) (17,436) 
Closing valuation                              24,387   16,201  40,588 
Closing book cost                              42,746   22,319  65,065 
Closing investment holding losses              (18,359) (6,118) (24,477) 
                                               24,387   16,201  40,588 
Realised (losses)/gains on disposals           (1,361)  1,751   390 
Increase in investment holding (losses)/gains  (11,121) (6,315) (17,436) 
Losses on investments                          (12,482) (4,564) (17,046) Transaction costs 

During the year the Group incurred transaction costs of GBP24,000 (2020: GBP41,000) and GBP14,000 (2020:

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