Annual Report and Financial Statements

CT UK

High Income

Trust PLC

31 March 2023

CT UK High Income Trust PLC

Contents

Overview

Company Overview 1

Financial Highlights 2

Summary of Performance 3

Strategic Report

Chairman’s Statement 5

Purpose, Strategy and Business Model 8

Key Performance Indicators 10

Manager’s Review 11

Manager’s Investment Philosophy and Process 14

Classification of Investments 16

Investment Portfolio 17

Sustainability and ESG 19

Promoting the Success of the Company 23

Principal Risks and Uncertainties and Viability Statement 25

Principal Policies 29

Governance Report

Board of Directors 31

Report of the Directors 32

Corporate Governance Statement 39

Report of the Nomination Committee 42

Report of the Engagement and Remuneration Committee 43

Report of the Audit Committee 44

Directors’ Remuneration Report 48

Statement of Directors’ Responsibilities 51

Independent Auditor’s Report 52

Financial Report

Financial Statements 60

Notes to the Financial Statements 64

AIFMD Disclosures 79

Notice of Meeting

Notice of Annual General Meeting 80

Other Information

Capital Structure 84

Shareholder Information 85

How to Invest 86

Ten Year Record 87

Alternative Performance Measures (“APMs”) 89

Glossary of Terms 91

Corporate Information 93

Financial Calendar

Annual General Meeting 20 July 2023

First quarter’s distribution paid (XD Date 6 July 2023) 4 August 2023

Second quarter’s distribution paid (XD Date 5 October 2023) 3 November 2023

Announcement of Interim Results December 2023

Third quarter’s distribution paid (XD Date 4 January 2024) 2 February 2024

Fourth quarter’s distribution paid (XD Date 4 April 2024) 3 May 2024

Announcement of Annual Results and Posting of Annual Report May 2024

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take,

you are recommended to seek your own independent financial advice from your stockbroker, bank manager, solicitor, accountant or other

independent financial adviser authorised under the Financial Services and Markets Act 2000 (as amended by the Financial Services Act

2012) if you are in the United Kingdom or, if not, from another appropriately authorised financial adviser. If you have sold or otherwise

transferred all your shares in CT UK High Income Trust PLC please forward this document, together with the accompanying documents,

immediately to the purchaser or transferee or to the stockbroker, bank or agent through whom the sale or transfer was effected for

transmission to the purchaser or transferee. If you have sold or otherwise transferred only part of your holding of shares, you should retain

these documents.

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Overview

Company Overview

Change of Name

With effect from 29 June 2022, the name of the Company was changed by resolution of the Board

to CT UK High Income Trust PLC.

CT UK High Income Trust PLC (the ‘Company’) (formerly BMO UK High Income Trust PLC) is an

investment trust and its shares are listed on the premium segment of the Official List of the

Financial Conduct Authority and traded on the London Stock Exchange.

Purpose

The purpose of the Company is to be a cost effective investment vehicle for investors seeking

income and capital returns from a portfolio invested predominantly in UK equities.

Investment Objective

The investment objective of the Company is to provide an attractive return to shareholders each year

in the form of dividends and/or capital repayments, together with prospects for capital growth.

In pursuit of its objective, the Company invests predominantly in UK equities and equity related

securities of companies across the market capitalisation spectrum.

Capital Structure

The Company has two classes of shares: Ordinary shares and B shares. The rights of each class

are identical, save in respect of the right to participate in distributions of dividends and capital.

The net asset value attributable to each class of shares is the same.

Only Ordinary shares are entitled to dividends paid by the Company. B shares, instead of receiving

dividends, receive a capital repayment at the same time as, and in an amount equal to, each

dividend paid on the Ordinary shares.

Shares may be held and traded within units, each unit comprises three Ordinary shares and one

B share.

Visit our website at ctukhighincome.co.uk

The Company is registered in Scotland with company registration number SC314671

Legal Entity Identifier: 213800B7D5D7RVZZPV45

Forward looking statements

This document may contain forward looking statements with respect to the financial condition, results of operations and business of the Company. Such statements

involve risk and uncertainty because they relate to future events and circumstances that could cause actual results to differ materially from those expressed or

implied by forward looking statements. The forward looking statements are based on the Directors’ current view and on information known to them at the date of

this document. Nothing should be construed as a profit forecast.

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2 | CT UK High Income Trust PLC

Overview

6.7%

Yield

(1)

on Ordinary shares

Distribution yield of 6.7% on Ordinary shares at 31 March 2023, compared

to the yield on the FTSE All-Share Index of 3.6%. Total dividends increased by

1.1% to 5.51p per Ordinary share compared to the prior year.

6.5%

Yield

(1)

on B shares

Distribution yield of 6.5% on B shares at 31 March 2023, compared to the yield

on the FTSE All-Share Index of 3.6%. Total capital repayments increased by

1.1% to 5.51p per B share compared to the prior year.

-0.4%

NAV total return

(1)

Net asset value total return per share for the financial year was -0.4%,

compared to the total return of the Benchmark

(2)

of +2.9%.

+0.6%

Ordinary share price total return

(1)

Ordinary share price total return per share for the financial year was +0.6%,

compared to the total return of the Benchmark

(2)

of +2.9%.

+2.3%

B share price total return

(1)

B share price total return per share for the financial year was +2.3%, compared

to the total return of the Benchmark

(2)

of +2.9%.

(1)

Yield and total return – See Alternative Performance Measures on pages 89 and 90.

(2)

Benchmark – From launch on 1 March 2007, the Company’s benchmark index was the FTSE All-Share Capped 5% Index. Following shareholder approval at the

Company’s AGM on 5 July 2018, the benchmark was changed to the FTSE All-Share Index.

Investors are reminded that the value of investments and any income from them may go down as well as up and they may not

receive back the full amount invested. Tax benefits may vary as a result of statutory changes and their value will depend on

individual circumstances.

Financial Highlights

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Overview

Summary of Performance

Total Return

(1)

Year to

31 March

2023

Year to

31 March

2022

Net asset value per Ordinary share, B share and unit

(2)

-0.4% +1.9%

Ordinary share price +0.6% +0.6%

B share price +2.3% +1.6%

Unit price +1.9% -2.6%

Benchmark

(3)

+2.9% +13.0%

Revenue and Distributions

Year to

31 March

2023

Year to

31 March

2022 % Change

Distributions per Ordinary share and B share 5.51p 5.45p +1.1%

Distributions per unit 22.04p 21.80p +1.1%

Yield

(1)

– Ordinary share 6.7% 6.3%

Yield

(1)

– B share 6.5% 6.2%

Revenue earnings per share 3.62p 3.61p +0.3%

Revenue reserve – per Ordinary share

(4)

2.83p 3.41p -17.0%

Capital

31 March

2023

31 March

2022 % Change

Net assets £104.2m £111.2m -6.3%

Net asset value per Ordinary share and B share 89.97p 95.97p -6.3%

Net asset value per unit 359.88p 383.88p -6.3%

FTSE All-Share Index 4,157.88 4,187.78 -0.7%

Discount

(1)

Ordinary shares -8.9% -9.3%

B shares -6.1% -8.3%

Units -10.2% -12.5%

Gearing

(1)

Gearing 8.5% 0.1%

Ongoing Charges

(1)

as percentage of average shareholders’ funds 1.02% 0.98%

(1)

Total return, yield, discount, gearing and ongoing charges – see Alternative Performance Measures on pages 89 and 90.

(2)

A unit consists of three Ordinary shares and one B share.

(3)

Benchmark – see definition on page 2.

(4)

Calculated after deducting the fourth interim dividend (which was paid after the year end) from the revenue reserve at 31 March.

Sources: Columbia Threadneedle Investments and Refinitiv Eikon.

4 | CT UK High Income Trust PLC

Overview

Annual dividends and Capital repayments

Growth in payments to shareholders

over last ten financial years

1st interim

Pence per share

2nd interim 3rd interim 4th interim

Source: Columbia Threadneedle Investments

2023202220212020201920182017201620152014

Distribution yield compared to the Benchmark Index

and Peer Group at 31 March 2023

FTSE All-Share

Index – Yield

Ordinary shares

– Distribution Yield

UK Equity Income Sector –

AIC Peer Group – Yield

Yield %

Source: Refinitiv Eikon and AIC

B shares

– Distribution Yield

Cumulative Performance to 31 March 2023

-5

10 Years5 Years3 Years1 Year

Net Asset Value total return

Source: Columbia Threadneedle Investments and Refinitiv Eikon

Ordinary share price total return B share price total return Benchmark - total return

-0.4 0.6 2.3 2.9

39.6

42.5

50.7

47.4

13.6

14.1

18.0

27.4

50.2 51.3 51.3

75.8

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I am pleased to present the first annual results of CT UK High

Income Trust PLC since becoming the Company’s Chairman

upon the retirement of John Evans at the conclusion of the

2022 AGM. I have put on record my thanks to John for his nine

years of unswerving service to shareholders and am pleased to

reiterate my appreciation for his guidance and leadership.

The year under review has been yet another difficult one for

investors in conventional equity investments. The unprovoked

invasion by Russia into Ukraine’s territory has become a

full-on war which, apart from the tragic and needless loss of

life, has created and exacerbated global price rises of energy,

commodities, raw materials, grain and most other foodstuffs

leading to severe inflationary pressures. This has become a

global problem and the UK has not escaped its effects with

headline inflation exceeding 10%. The Bank of England was

slow to acknowledge the threat of escalating prices to the

stability of the economy but it is expected that, after twelve

rises in Bank interest rates to 4.5%, its actions will have the

desired effect of reining in the beast before the calendar year

end. Meanwhile, full employment has been maintained and

recession avoided so, being an optimist, I am prepared to say

that I think the worst is behind us.

Against this backdrop, managing an investment company

investing predominantly in a differentiated but concentrated

portfolio of UK-quoted equities for income and capital growth

has not been a walk in the park. Your Portfolio Manager, Philip

Webster, deserves due credit for maintaining his focus during

what has now been a trying three years. He has taken positions

in quality stocks at depressed prices over the last few months

and is continuing to see other opportunities. Your Board has

the utmost confidence in Philip to deliver income and capital

returns over the coming years.

Performance

In the year to 31 March 2023 your Company produced a Net

Asset Value (‘NAV’) total return of -0.4% versus the total return

from the FTSE All-Share Index, the benchmark index, of +2.9%.

Whilst it is disappointing to lag the index, given the backdrop

I have described, the shortfall is not unexpected. Philip goes

into his usual detail on the portfolio holdings in the Manager’s

Review but the Board is well aware and supportive of what he

is aiming to achieve by investing in a concentrated number

of positions, differentiated from the benchmark index. This

can lead to the portfolio’s performance being periodically at

variance with that of the benchmark index when, say, energy

companies (to which the Company has no exposure but tend to

be large and thus in the index) see their share prices increase

sharply purely on the back of rising wholesale costs of oil and

gas due to the war in Ukraine. On the positive side, however,

not being bound to invest solely to reflect index constituents,

offers many opportunities for superior growth prospects.

Share Price Performance and Discount to NAV

At the financial year end, the Company’s Ordinary share and

B share prices stood at discounts to the net asset value

of 8.9% and 6.1% respectively. These were tighter than at

31 March 2022 and consequently, the share price total

return for the Ordinary shares and B shares was +0.6% and

+2.3% respectively. The average discount levels at which the

Company’s Ordinary shares and B shares traded relative to net

asset value in the year were 7.5% and 4.3% respectively.

Strategic Report

This Strategic Report, which includes pages 5 to 30 and incorporates the Chairman’s Statement has

been prepared in accordance with the Companies Act 2006.

“Tenth consecutive year of dividend/capital repayment increases and at

31 March 2023 the Ordinary shares and B shares had yields of 6.7% and

6.5% respectively”

Andrew Watkins Chairman

Chairman’s Statement

6 | CT UK High Income Trust PLC

Strategic Report

Dividends and Capital Repayments

Your Board recognises the importance of dividends to

shareholders and has utilised the Company’s revenue reserve

to maintain and increase dividend payments to Ordinary

shareholders in recent years and has done so again in the

year to 31 March 2023. Total distributions to shareholders

increased by 1.1% to 5.51p per share compared to the

previous year. In order to pay this total dividend to Ordinary

shareholders, £497,000 was drawn from the Company’s

revenue reserve. After payment of the fourth interim dividend

on 5 May 2023, the revenue reserve is £2.4 million,

representing 2.83p per Ordinary share.

Your Company has now increased its distribution to shareholders

in each financial year since 2013. The total dividend/capital

repayment for the year to 31 March 2023 represented a yield of

6.7% and 6.5% based on the Ordinary share price and B share

price of 82.0p and 84.5p respectively at 31 March 2023.

As I mentioned in the Company’s Interim Report, it is the

Board’s intention to rebuild the revenue reserve and return to

a covered dividend as soon as practicable.

Gearing

As at the end of the year under review, the Company had a

total borrowing facility of £15 million through an unsecured

Revolving Credit Facility with The Royal Bank of Scotland

International Limited. Your Board believes that an investment

company should use gearing to enhance returns to shareholders

whenever possible and encourages the Portfolio Manager to

use his discretion accordingly. As at the year end, £12 million

of this facility had been drawn down and invested in quality

stocks including during one of the market’s increasingly common

“risk-off” periods, hence at advantageous prices and decent

yields. More details can be found in the Manager’s Review.

Responsible Investment

Environmental, Social and Governance (‘ESG’) engagement is

an activity in which your Manager has a long and respected

record of achievement and these considerations lie at the

core of your Manager’s investment process. Our approach

to Responsible Investment is set out on pages 19 to 22

and illustrates the engagement the Manager has had with

investments within our portfolio.

Board Change

As mentioned in my Interim Statement, I am pleased to report

that Angus Pottinger joined the Board as a non-executive

Director with effect from 24 November 2022. He has huge

experience in the investment world and over 22 years working

directly with investment companies as Head of Invesco’s

accounting, company secretariat and administration functions.

His deep knowledge of the sector and relevant experience will

be of direct benefit to shareholders.

Manager and Name Change

As previously reported, Columbia Threadneedle Investments,

part of Ameriprise Financial acquired BMO’s EMEA asset

management business (‘BMO GAM (EMEA)’), which included your

Company’s Manager (‘BMO Investment Business Limited’). The

rebranding of the BMO GAM (EMEA) business was completed

towards the start of July 2022 and your Company’s Board

decided that continuing to align with the brand of the Manager

and its savings plans would avoid unnecessary confusion.

Accordingly, on 29 June 2022, your Company therefore

announced that it had changed its name to CT UK High Income

Trust PLC with immediate effect. The Company’s website

address was also changed to ctukhighincome.co.uk and its

trading instrument display mnemonics (“TIDM”) changed

to CHI, CHIB and CHIU for the Company’s Ordinary shares,

B shares and Units respectively.

There has been no change to the personnel running the

activities of your Company in terms of both portfolio

management and administration.

Annual General Meeting (AGM)

The AGM will be held at 12 noon on 20 July 2023 at Exchange

House, Primrose Street, London EC2A 2NY. It is an opportunity

for shareholders to engage with the Board and Manager and

I hope you will be able to attend.

Outlook

After two years of COVID and dealing with its aftermath, the

world was plunged into further uncertainty by Russia. The

effects on shareholder returns have been magnified in both

directions over that three-year period, first fueled by a total

change in working practices amid massive (and expensive)

Government support packages and then through rising

energy prices and supply chain shortages leading to yet

more (expensive) support, especially for the vulnerable and

elderly. Added to this, in the UK came the advent of three

Prime Ministers in a matter of weeks; the haphazard policy

announcements that ensued caused serious disquiet in the

gilt market which has only recently subsided.

A long period of near-zero interest rates probably led many to

believe that borrowing money at such levels was the norm and

unlikely to change anytime soon. The slowly dawning realisation

that interest rates had to rise to defeat inflation has had the

anticipated effect on the country but, miraculously, has not

collapsed the economy, regardless of the inevitable squeeze

on household budgets, or affected employment numbers as

businesses still find it difficult to fill vacancies. Nor has it led to

recession or to a stock market rout.

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Strategic Report

However, uncertainty is always the enemy and whilst the

resilience of all the above is commendable, a period of calm

in the wider world and stock markets in particular would be

welcome and possibly key to making positive headway. Given

war is on Europe’s doorstep and the rhetoric more alarming by

the day, it is all the more remarkable that the UK’s FTSE 100

index recently hit an all-time high.

I sound all doom and gloom and I really don’t mean to be.

It is likely that interest rates and inflation have peaked with

the latter forecast to be nearer 5% by the end of 2023. This

should help resolve many of the difficulties currently being

experienced brought about by the likes of soaring energy

prices, now thankfully abating, and wage demands, with more

realistic settlements likely to be achieved. Your Board oversees

a Portfolio Manager dedicated to the task of securing growth

in capital and income for shareholders and he works for an

organisation that supplies all the resources he needs to carry

out that objective. The Company has changed in many ways

over the six years I have been on the Board, but I firmly believe

– as do my fellow Directors – that it is in the best shape

possible, with a balanced but differentiated and concentrated

portfolio of quality stocks, to achieve the Company’s objectives

over the coming years.

As ever, thank you for being a shareholder in CT UK High

Income Trust PLC.

Andrew Watkins

Chairman

31 May 2023

8 | CT UK High Income Trust PLC

Purpose and Strategy

The purpose of the Company is be a cost effective investment

vehicle for investors seeking income and capital returns from a

portfolio invested predominately in UK equities.

The investment objective is to provide an attractive return

to shareholders each year in the form of dividends and/

or capital repayments, together with prospects for capital

growth. We do this by investing predominantly in UK equities

and equity related securities of companies across the market

capitalisation spectrum. Our wider strategy is to promote

the Company as a compelling investment choice through all

available channels.

Business Model

CT UK High Income Trust PLC is a listed closed-end investment

company and carries on business as an investment trust.

As an investment company with no employees, the Directors

believe that the best way of meeting their duty to promote the

success of the Company and achieving its investment objective

for the benefit of stakeholders is to work closely with its

appointed Manager. The Board has contractually delegated the

management of the investment portfolio, and other services,

to Columbia Threadneedle Investment Business Limited

(formerly called BMO Investment Business Limited, which was

part of BMO GAM (EMEA)) (the ‘Manager’) which is ultimately

owned by Columbia Threadneedle Investments, the global

investment management business of Ameriprise Financial, Inc.

a company incorporated in the United States. Within policies

set and overseen by the Directors, the Manager has been given

overall responsibility for the management of the Company’s

assets, gearing, stock selection and risk management.

Engagement on environmental, social and governance (‘ESG’)

matters is undertaken through a global team within Columbia

Threadneedle Investments.

As a listed closed-end investment company, the Company is

not constrained by asset sales to meet redemptions. The

Company’s capital structure provides the flexibility to take a

longer term view and to remain invested while taking advantage

of volatile market conditions. Having the ability to borrow

to invest is a significant advantage over a number of other

investment fund structures. These features combine to form

a resilient and adaptable business model.

The Company’s Board of non-executive Directors is responsible

for the overall stewardship and governance of the Company

and how it promotes the success of the Company is set out

on pages 23 and 24. The Board’s biographical details can be

found on page 31. The Company has no executive Directors

or employees.

The Board remains responsible for decisions over corporate

strategy, corporate governance, risk and control assessment,

setting policies as detailed on pages 29 and 30, setting limits

on gearing and monitoring investment performance.

Alignment of Values and Culture

In addition to strong investment performance from our Manager,

we expect it to adhere to the highest standards of Responsible

Investment, transparency, corporate governance and business

ethics and that its values and culture align with our own.

As an original signatory to the United Nations Principles for

Responsible Investment (‘UNPRI’), Columbia Threadneedle

Investments continues to perform well in the 2021 UNPRI

assessment, and compared to our peers for key areas of its

Responsible Investment approach and active ownership in

listed equities. A key aspect of the change in ownership of

the Manager was the cultural fit with Columbia Threadneedle

Investments and the Board considered the Manager’s culture

and shared values as part of the annual assessment of its

performance and in determining whether its reappointment is

in the interests of shareholders. With Columbia Threadneedle

Investments, and as part of Ameriprise Financial, Inc., the

Manager can be expected to continue its long-established culture

of diversity, collaboration and inclusion, all of which are anchored

by shared values and industry-leading employee engagement in

keeping with the Board’s own expectations and beliefs.

Responsible Investment Impact

Environmental, Social and Governance (‘ESG’) issues can present

both opportunities and threats to the long-term investment

performance the Company aims to deliver and its approach, as

set out on pages 19 to 22, is aligned towards the delivery of

sustainable investment performance over the longer term.

The direct impact of the Company’s activities is minimal as it has

no employees, premises, physical assets or operations, either as

a producer or a provider of goods and services, and it does not

have customers in the traditional sense. Consequently, it does

not directly generate any greenhouse gas or other emissions

or pollution. The Company’s indirect impact occurs through its

investments and this is mitigated by the Manager’s Responsible

Investment approach as explained on pages 19 to 22.

The Manager

A summary of the terms of the investment management

agreement is contained in note 4 to the financial statements.

The Manager also acts as the Alternative Investment Fund

Manager (‘AIFM’) under the Alternative Investment Fund

Managers Directive (‘AIFMD’) and provides ancillary functions

such as administration, marketing, accounting and company

secretarial services to the Company.

Strategic Report

Purpose, Strategy and Business Model

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Strategic Report

Philip Webster acts as the Portfolio Manager (‘Portfolio Manager’)

to the Company, on behalf of the Manager. Philip has over

15 years’ experience in managing investment companies. He is

supported in carrying out research and in the selection of stocks

by a team of investment professionals. Details of the Manager‘s

investment philosophy and process are set out on pages 14

and 15.

Manager Evaluation

Investment performance and responsible ownership are

fundamental to delivering the investment objective for

shareholders and therefore an important responsibility of the

independent non-executive Board of Directors is the robust

annual evaluation of the Manager. This evaluation is an

essential element of strong governance and mitigation of risk.

The process for the evaluation of our Manager’s performance

and its capabilities and resources for the period under review,

which was conducted by the Engagement and Remuneration

Committee, and the basis on which the reappointment decision

was made, is set out on page 43.

Investment Policy

The Company’s investment policy is set out on page 29 and an

analysis of the investment portfolio is contained on pages 16

to 18.

Any material change to the investment policy of the Company

will only be made with shareholder approval.

Managing Risks and Opportunities

We seek to make effective use of our corporate structure and

the investment opportunities that lead to long-term growth in

capital and income for our shareholders. These opportunities

do not come without risks and therefore the performance of

our Manager is monitored at each Board meeting on a number

of levels. In addition to managing the investments, ancillary

functions such as administration, marketing, accounting and

company secretarial services are also carried out by the Manager.

At each Board meeting it reports on the Company’s investment

portfolio, performance, recent portfolio activity, market outlook,

revenue and expense forecasts, internal control procedures,

any errors, marketing, shareholder and other stakeholder issues

including the prices of the Company’s shares relative to NAV,

together with accounting and regulatory updates. The Board also

considers compliance with the investment policy, investment

restrictions and compliance with borrowing covenants.

The Company’s principal risks and uncertainties that could

threaten its objective, strategy and performance, and how the

Board manages such risks, are set out in detail on pages 25

to 27. The risk of not achieving the Company’s objective, or of

consistently underperforming its benchmark or competitors,

may arise from any or all of inappropriate investment strategy,

poor market conditions, the use of gearing, insufficient

monitoring of costs and service provider issues.

In addition to monitoring our Manager’s performance,

capabilities, available resources and its systems and controls,

the Directors also review the services provided by other

principal suppliers. These include JPMorgan Chase Bank, the

Custodian and JPMorgan Europe Limited, the Depositary in

their duties towards the safeguarding of the Company’s assets.

Review of Performance and Outlook

The principal policies that support our investment and business

strategy are set out on pages 29 and 30. Shareholders can

assess our financial performance from the Key Performance

Indicators (‘KPIs’) that are set out on page 10. The Chairman’s

Statement on pages 5 to 7 and the Manager’s Review on

pages 11 to 13, both of which form part of this Strategic

Report, provide a review of the Company’s returns and market

conditions during the financial year, the position of the

Company at the year end, and the outlook for the coming year.

In light of the Company’s strategy, investment processes and

control environment (relating to both the oversight of its service

providers and the effectiveness of the risk mitigation activities),

the Board has set out its viability statement on page 28 and

its reasonable expectation that the Company will be able to

continue in operation and meet its liabilities as they fall due

over the next three years.

Stakeholder Communication and Marketing

The Company fosters good working relationships with its key

stakeholders; such as the Manager, shareholders, bankers

and other key service providers. The Board works closely with

the Manager to ensure optimal delivery of the Company’s

investment proposition through all available channels and,

together, we remain focused on promoting the success of the

Company. The Manager offers a range of savings plans for

retail investors which are a convenient and flexible way to invest

in the Company, details of which can be found in the ‘How to

Invest’ section of this report on page 86.

The Company welcomes the views of all shareholders and places

great importance on communication with them. In addition to the

annual and interim reports that are available for shareholders,

monthly fact sheets and additional information is included on the

Company’s website at ctukhighincome.co.uk.

Whenever the Manager holds meetings with the Company’s

larger shareholders, these are reported on to the Board.

The Chairman and other Directors are available to meet

shareholders if required. In addition, meetings are held with

current and prospective shareholders and analysts covering the

investment trust sector.

The Annual General Meeting of the Company provides a forum,

both formal and informal, for shareholders to meet and discuss

issues with the Directors and Manager of the Company.

Through the Manager, we also make sure the savings plan

investors are encouraged to vote at the AGM in addition to

those who hold their shares on the main shareholder register.

Details of the proxy voting results on each resolution are

published on the Company’s website.

10 | CT UK High Income Trust PLC

Strategic Report

Total return

(1)

performance to 31 March 2023

1 Year % 3 Years % 5 Years % 10 Years %

Net asset value per Ordinary share, B share

and per unit

-0.4% 39.6% 13.6% 50.2%

This measures the Company’s share/unit price

and NAV total returns (which assumes dividends/

capital repayments paid by the Company have been

reinvested), relative to the benchmark.

Ordinary share price 0.6% 42.5% 14.1% 51.3%

B share price 2.3% 50.7% 18.0% 51.3%

Unit price 1.9% 38.1% 5.7% 44.8%

Benchmark

(2)

2.9% 47.4% 27.4% 75.8%

Distribution Yield

(1)

Financial year to 31 March

2023

2022

2021

Ordinary shares 6.7 6.3 5.8

This shows the Company’s distribution yield at the

year-end relative to the benchmark.

B shares 6.5 6.2 5.8

Yield on FTSE All-Share Index 3.6 3.1 2.9

Average discount

(1)

to NAV

During the financial year to 31 March

Ordinary

B shares

Units

2023 -7.5 -4.3 -8.2

This is the average difference between the share/

unit price and the NAV per share/unit during the

financial year.

2022 -6.9 -5.2 -7.4

2021 -9.7 -9.2 -10.2

Ongoing charges ratio

(1)

As at 31 March %

2023 1.02

This data shows whether the Company is being

run efficiently. It measures the running costs as a

percentage of average net assets.

2022 0.98

2021 1.04

(1)

See Alternative Performance Measures on pages 89 and 90 for explanation.

(2)

Benchmark – see definition on page 2.

Sources: Columbia Threadneedle Investments and Refinitiv Eikon.

The Board recognises that it is the distribution level of the Ordinary shares and B shares together

with the longer term share price performance that is most important to the Company’s investors.

Share price performance is driven largely by the performance of the net asset value.

The Board uses a number of performance measures to assess the Company’s success in meeting

its objectives. The key performance indicators (‘KPIs’) (also referred to as Alternative Performance

Measures) are set out below. Additional comments are provided in the Chairman’s Statement and the

Manager’s Review discussing the performance of the Company during the current year.

Key Performance Indicators

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Strategic Report

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There is no doubt that this has been another challenging year

to navigate. I’m beginning to sound like a broken record as this

was exactly what I said in the 2021 and 2022 Annual Report.

What I can say is that every year has been totally unique; first

with the Covid pandemic, then the Ukraine war and now a

cost-of-living crisis. This is also the first time in over a decade

where we have seen interest rates closer to longer term

historic averages, which will have a slow but significant impact

on consumer spending. This has brought with it considerable

debate about whether or not the UK experiences a mild

slowdown rather than a hard recession.

UK politics has also played a significant part in the turbulence

we have seen over the last year. In September, the appointment

of Liz Truss as Prime Minister was the start of what was to be

seen as an unprecedented time in UK politics, with three Prime

Ministers in as many months. The demise of Truss was driven

by Chancellor Kwasi Kwarteng’s ill-conceived mini-budget, which

was received very poorly by the markets. The bond market

took fright from the initial £45 billion tax giveaway which was

seen as fiscally irresponsible, sending UK Gilts and the pound

into freefall. The ensuing crisis of confidence led to her swift

replacement by Rishi Sunak, with Jeremy Hunt appointed as

his new Chancellor. According to many commentators, the

Chancellor, faced a ‘politically impossible’ budget U-turn,

but one that has ultimately stabilised the economy. His

package consisted of £30 billion in spending cuts and a

massive £25 billion increase in taxes. There was help for

the poorest, with benefits and pensions being increased in

line with inflation, while manifesto spending plans that had

been promised, were scrapped as they sought to balance the

books. The budget has helped the UK bond yield recover, a key

tenet for the mortgage market. We have also seen the pound

recover, another positive sign that the UK is deemed to be on a

firmer footing.

Events of the last few weeks in March, with the collapse

of Silicon Valley Bank (‘SVB’) and Credit Suisse have sent

shockwaves through the banking sector. SVB was the

16th largest bank in the US with $209 billion of assets, and

the 2nd largest bank failure in US history. Regulators had

to act swiftly to stabilise the system; deposit guarantees,

and additional lines of liquidity being offered to mitigate

any contagion risk. While this event seems to have been

contained it has yet again raised concerns about the fragility

of the banking system and whether this failure is the start of

something more significant.

You would expect these headlines would have caused investors

to shy away from equity markets. Quite the reverse is true,

with the FTSE All-Share close to all-time highs. This does mask

vast differences when you break the market down by size and

sector, which we will come back to later, but evidence suggests

that the UK equity market remains an attractive proposition for

global investors.

If further corroboration was needed, we have also seen private

equity takeover activity rise. Offers have been made for Wood

Group, Network International, Dechra Pharmaceuticals and, in

mid-April, Apollo tabled an offer for THG, which is one of the

Company’s holdings. With the strength of the US dollar over

the last few years and depressed valuations, it’s not a surprise

to see a rise in dealmaking as private equity firms look to

deploy capital.

Performance

The net asset value (‘NAV’) total return of the Company

declined 0.4% over the year to 31 March 2023,

underperforming the 2.9% total return from the FTSE All-

Share index. As mentioned previously, size has been a major

contributor to performance with some of the more defensive, or

commodity exposed sectors, performing well post the outbreak

of the Ukraine war. The FTSE 100 rose 5.4% (total return) over

the Company’s financial year. Meanwhile, the FTSE 250 index

of mid-market capitalised stocks fell 7.9% and the FTSE Small

Cap (ex-investment trusts) index a more extreme 12.9% decline

(all total return).

Manager’s Review

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conse pedita quid qui simil idelign issit, audae dolore volorum aut unt volorer.

Philip Webster, Portfolio Manager

12 | CT UK High Income Trust PLC

Strategic Report

The Company’s investment portfolio has been constructed to

have a larger focus on the mid-market, where we see better

quality assets and growth over the medium-term, but as we

discussed in the 2022 Annual Report, there will be periods

where the performance of the benchmark behemoths can

significantly outweigh the performance of these smaller

index constituents.

An analysis of the investment portfolio by index is provided on

page 16 and shows its significant exposure down the market

cap spectrum. Including AIM and non-index positions, this now

accounts for nearly 40% of our invested assets.

When you include the 15% from our European (overseas)

holdings approximately 50% of the exposure is to businesses

outside the FTSE 100. This is by design, differentiating your

Company from some of our more index-tracking peers.

At a stock specific level; not owning BP, Unilever, AstraZeneca,

Shell and HSBC have been a 4.3% drag in relative performance

over the last year. I have consistently defended this stance on

quality grounds, when it comes to the oil majors. It has taken a

war and energy crisis for these names to deliver decent returns

on capital employed, a level which I don’t believe is sustainable

– unless of course you can provide assurance that the oil price

is going back to $100 a barrel. I see better quality businesses

than Unilever in the staples sector. The outlier in these names

is AstraZeneca. This has performed significantly better than

I thought it would, and one I can look back and concede I was

wrong to sell.

I am not going to blame the shape of the index for the

Company’s performance. The way the investment portfolio is

built means it will always perform differently to the index, and

despite the 4.3% headwind, I’m happy with the underlying

portfolio performance this year and the growth outlook. We have

used the recent volatility to buy quality businesses at valuations

that have not been seen for years. Over our financial year,

additions have included Rotork, Hiscox, Hargreaves Lansdown,

OSB Group, Persimmon and Schneider Electric. These are all

market leaders in their respective fields, and businesses that

have structural growth to deliver returns for years to come. They

also, in several cases, have attractive and growing dividend

yields, which are supportive of the revenue we generate and the

high dividend yield of the Company.

Many of the Company’s holdings have had a very good year,

including Richemont, with luxury goods spending continuing to

recover sharply post the pandemic. This will be buoyed by the

opening of China which has already seen some of Richemont’s

peers deliver sales growth ahead of expectations. UK

industrial, Rotork, has also delivered much better results since

initiation, allowing the share price to rise over 30% in the last

year. OSB Group has been another recent new position that has

performed ahead of expectations. The buy-to-let lender, to the

professional investor market, has seen growth hold up better

than the market expected. This allowed them to pay a special

dividend with their full year results, on top of an already high

7% dividend yield.

Dividends

Calendar 2022 saw UK dividends rise 8.0% to £94.3 billion,

but this figure was held back by a one-third decline in one-off

special payments. This was in part mitigated by a weak pound

which boosted the payouts by £3.8 billion. Record mining

dividends accounted for £1 in every £6 distributed, although

payouts fell sharply towards the second half of the calendar

year. Banks made the largest contribution to growth, followed

by the oil majors. When you look at the underlying statistics

though (excluding special dividends) the FTSE 100 dividends

rose 14.8%, while the Mid-250 index, where the Company has

a larger exposure, saw growth of 23.8%. This is one of the major

attractions of our mid-cap exposure, the compounding effect of

earnings and dividend growth at the right point in the cycle.

Discussions with the Company’s Board at the outset of the

financial year were focused on capital growth and returning the

Company towards a covered dividend. The focus has therefore

been two-fold, adding quality at the right price, mentioned

above, whilst also adding to the revenue. Whilst it may appear

that the revenue has been flat, the current financial year had

£557,000 less in special dividends including those paid by Rio

Tinto and Berkeley Group in the prior financial year.

I have sold several of the zero yielding names; Melrose, Just Eat

Takeaway and Scout24 and also sold Prudential and Haleon,

the latter following the split from GlaxoSmithKline. I wasn’t

comfortable adding to Haleon given the level of its gearing and

lack of a dividend, even though they have defensive earnings

qualities from their over-the-counter pharmacy sales. I also

reduced some of the better performers in the investment

portfolio where yields had contracted, such as Deutsche

Boerse, Richemont, Intermediate Capital and Beazley. We

used these proceeds to build up positions in Legal & General,

Phoenix Group and OSB Group, alongside some of the newer

additions. At acquisition these three holdings yielded 8.0%,

9.0% and 7.0% respectively, almost twice the level of the FTSE

All-Share of 3.6% at 31 March 2023.

The final, and very important piece of the jigsaw is the gearing.

With interest rates set to rise we took the tough decision to

reduce gearing in December 2021. While strategically this was

the right decision, we sacrificed revenue to protect capital. With

rates now closer to the possible peak, and post the collapse

of SVB, we felt there was an opportunity to raise our gearing.

We used this additional capital to opportunistically add to our

diversified financial holdings, which had been caught in the

crossfire of the banking sector sell off and where declines felt

unwarranted and valuations were cheap. At 31 March 2023 we

have drawn down £12 million of the £15 million facility, which will

help increase the level of revenue for the year to 31 March 2024.

Report and Accounts 2023 | 13

Strategic Report

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The dividend outlook for 2023 is however less rosy, according

to Link Asset Monitor. They are forecasting headline payouts to

decline 2.8%, and with sales and profits under pressure from

inflation, they expect special dividends to be down further. It

is difficult to quantify this as we have very little line of sight on

earnings at this stage of the year. I am however encouraged

that the changes I have made in the investment portfolio have

increased the number of holdings with improved dividend cover

and strong balance sheets which should stand the Company in

good stead to weather a downturn.

Outlook

I have consistently said that this year will likely see investor

sentiment wax and wane. This has so far played out with

markets starting the year very strongly. In the first two months

of 2023, the FTSE All-Share rose 6% (total return), before being

hit by the collapse of SVB. This weakness has, however, been

short-lived with the FTSE All-Share close to highs, as investors

look through the current volatility.

Commentators remain nervous about the impact of a recession,

which may well be worse in the US than it is in Europe. It would

be foolish to believe we would be immune, although China has

the power to support growth as its economy reopens. While

these are all interesting topics to debate, building an investment

portfolio to manage this from a top-down perspective is an

exceptionally difficult exercise. Given the work we have done on

the investment portfolio and the qualities visible in the business

models we are comfortable with positioning. There is a scenario

where the behemoths continue to outperform as investors seek

the relative safe haven of these mega-caps, but how long will

it last? The follow-on question is; is it possible to be good (or

fortunate) enough to time this and turn the portfolio to quality

mid-caps that will outperform when we do see a rally down the

cap scale?

To try and defensively manage through what might be a tough

period is thus less preferable to focusing on quality assets

at the right valuation. I prefer the latter strategy and to seek

out the relative safety of quality business models with strong

balance sheets and pricing power. These will be the ultimate

winners. I can’t tell you exactly when this will turn, but when it

does, the portfolio is well placed to capitalise on the upside.

Philip Webster

Portfolio Manager

Columbia Threadneedle Investment Business Limited

31 May 2023

14 | CT UK High Income Trust PLC

Strategic Report

We believe investment markets can be inefficient and that share prices may not fully reflect the

future prospects and returns of companies. We believe it is possible to identify significant deviations

between market prices and a conservative assessment of the intrinsic value of a business.

By investing in such companies at attractive prices, superior

investment performance can be generated. In particular,

we believe those companies that can compound returns at

sustainably high rates over many years tend to be undervalued

by the market. The valuations of companies can also become

attractive because of adverse market reaction to short-

term difficulties or simply because a sector has become

unfashionable. If companies are able to generate attractive

returns over long periods, there is evidence that the market

eventually rewards this success with higher valuations.

This philosophy leads naturally to long-term investment thinking

and the generation and preservation of value over the longer

term. We are not looking to trade shares, nor are we making

short-term bets on market movements, but instead are looking

to the longer term. Over time, we expect the high returns

generated by our holdings to be reflected in share prices, which

will in turn benefit further from valuation increases as the

market recognises the level and sustainability of those returns.

As shareholders, we are part-owners of businesses, and take

our responsibilities seriously, engaging with the company’s

management and non-executives if necessary, and voting on all

resolutions at company meetings.

Manager’s Investment Philosophy

andProcess

The Investment Process focuses on Three Aspects for Each Company

• Margin of safety

• Present value of

future cash flows

• Sustainable

superior returns

• ESG score embedded

in proprietary

valuation method

• Proven operators

• Responsible capital

allocators

• Aligned interests

• Appropriate

incentives

•

Understandable

• Durable competitive

advantages

• Attractive business model

• Strong sustainability

characteristics

• Strong governance

Report and Accounts 2023 | 15

Strategic Report

Risk is often seen as the flipside of return. The standard

economic and business academic approach to risk measures

it in terms of volatility. Sharp upward moves in share prices

are seen as just as “risky” as an equivalent downward move.

This is not really a measure that most practical investors would

find useful or familiar. We prefer an approach which focuses

on companies with attractive returns and relatively little debt

where we expect to be able to reduce the risk of a permanent

loss of capital.

We carry out detailed analysis of all the companies in which

we invest, looking in particular at three aspects: the Quality

of the company; its Management; and the Valuation of the

shares. Amongst the most important issues examined is a

thorough assessment of the sustainability of the company’s

competitive position and returns it can generate, and the ability

of the management team and its alignment with shareholders.

Integral to our assessment of these factors is an analysis of

the Environmental, Social and Governance (‘ESG’) issues that

face the company and its responses to them which is fully

integrated into our process and valuation analysis. More detail

is given on pages 19 to 22. Our valuation approach focuses

on discounted cash flows, but is pragmatic enough to realise

this does not work for all companies in all sectors so other

valuation methods are also used.

Before investing, we ascertain that the share price stands at a

reasonable discount to an assessment of the intrinsic value of

the business, giving us a margin of safety on the investment.

Our research is conducted in-house, which is peer reviewed

by the wider investment team prior to any purchase decision.

This ensures the benefit of shared knowledge and experience

is brought to bear on each investment. The progress of the

company and its share price will then be continually monitored

with in-depth reviews and retesting of the original investment

thesis particularly if the company or its share price don’t

perform as initially expected.

Like all investors, we are having to make assessments about

the future and take decisions in the face of uncertainty.

There is a real possibility of being wrong. We believe that we

can mitigate this risk by following this long-term philosophy,

emphasising a number of factors: thorough analysis; peer

review; the need for a margin of safety on purchase; continual

monitoring; and diversification of the investment portfolio.

Reasons to sell can be driven by positive or negative

factors: positive, if the value of the company has risen to our

assessment of its value, or negative, if the assessment of

the company’s long-term value deteriorates significantly. An

investment may also be sold if, for example, a similar, but

cheaper alternative can be found or if the size of the investment

position has become larger than is preferred for risk purposes.

Philip Webster

Portfolio Manager

31 May 2023

Implementation of the Investment Process

Pre-defined

review triggers

Clear sell

discipline

Peer review

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16 | CT UK High Income Trust PLC

Strategic Report

The following table and chart shows, at 31 March 2023, the percentage weightings by sector of the investment portfolio in

comparison to the FTSE All-Share Index.

Investment Portfolio by Sector

Sector % Total investments % FTSE All-Share Index

Financials 29.6 22.2

Consumer Discretionary 29.0 11.7

Consumer Staples 17.4 15.5

Industrials 8.8 11.6

Basic Materials 5.6 7.7

Health Care 4.3 11.4

Technology 3.9 1.1

Real Estate 1.4 2.5

Utilities – 3.7

Energy – 11.1

Telecommunications – 1.5

Total 100.0 100.0

0510 15 20 25 30

Telecommunications

Energy

Utilities

Real Estate

Technology

Health Care

Basic Materials

Industrials

Consumer Staples

Consumer Discretionary

Financials

FTSE All-Share Index %

Total Investments %

Investment Portfolio analysis by Index as at 31 March 2023

Source: Columbia Threadneedle Investments

% of Investment

Portfolio

FTSE 100 45.7%

FTSE 250 30.4%

Overseas 15.0%

Non-Index 7.2%

AI M 1.7%

100.0%

Classification of Investments

Report and Accounts 2023 | 17

Strategic Report

At 31 March 2023

Company

Market Value

31 March 2023

£’000

% of

Total

Investments

British American Tobacco (Consumer Staples – Tobacco)

British American Tobacco is involved in the manufacture, marketing and selling of cigarettes and other

tobacco products. It is also at the forefront of developing alternatives to traditional tobacco products. 7,367 6.5

Rio Tinto (Basic Materials – Industrial Metals & Mining)

Rio Tinto is a diversified international mining company. 6,304 5.6

Berkeley Group (Consumer Discretionary – Household Goods & Home Construction)

Berkeley Group builds homes and neighbourhoods across the UK, with a focus on London. 5,542 4.9

Imperial Brands (Consumer Staples –Tobacco)

Imperial Brands is involved in the manufacture, marketing and selling of cigarettes and other tobacco

products. It is also at the forefront of developing alternatives to traditional tobacco products. 5,145 4.5

Close Brothers Group (Financials – Banks)

Close Brothers is a leading UK merchant banking group providing lending, deposit taking, wealth

management services and securities trading. 4,847 4.3

GSK (Health Care – Pharmaceuticals & Biotechnology)

GSK is a global manufacturer and marketer of pharmaceutical products. 4,825 4.3

Phoenix Group Holdings (Financials – Life Insurance)

Phoenix Group is the UK’s largest long-term savings and retirement business and offer a range of products

across their market-leading pensions, savings and life insurance brands. 4,506 4.0

RELX (Consumer Discretionary – Media)

RELX is a multinational information and analytics company. 4,498 4.0

ASML Holding (Technology – Technology Hardware & Equipment)

ASML is one of the world’s leading manufacturers of chip-making equipment. 4,367 3.9

Legal & General Group (Financials – Life Insurance)

Legal & General is one of the UK’s leading financial services groups. 4,336 3.8

Ten largest investments 51,737 45.8

Investment Portfolio

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18 | CT UK High Income Trust PLC

Strategic Report

At 31 March 2023

Company Sector – Sub Sector

Market Value

31 March 2023

£’000

% of

Total

Investments

Cairn Homes Consumer Discretionary – Household Goods & Home Construction 4,163 3.7

OSB Group Financials – Finance & Credit Services 4,065 3.6

Intermediate Capital Group Financials – Investment Banking & Brokerage Services 3,774 3.3

Compass Group Consumer Discretionary – Consumer Services 3,713 3.3

Compagnie Financière Richemont Consumer Discretionary – Personal Goods 3,659 3.2

Vistry Group Consumer Discretionary – Household Goods & Home Construction 3,656 3.2

Hargreaves Lansdown Financials – Investment Banking & Brokerage Services 3,566 3.1

Diageo Consumer Staples – Beverages 3,479 3.1

Experian Industrials – Industrial Support Services 3,250 2.9

Persimmon Consumer Discretionary – Household Goods & Home Construction 3,019 2.7

Twenty largest investments 88,081 77.9

Schneider Electric Industrials – Electronic & Electrical Equipment 2,690 2.4

Delivery Hero Consumer Discretionary – Consumer Services 2,250 2.0

Hiscox Financials – Non-Life Insurance 2,154 1.9

Beazley Financials – Non-Life Insurance 2,124 1.9

Rotork Industrials – Electronic & Electrical Equipment 2,104 1.9

Deutsche Boerse Financials – Investment Banking & Brokerage Services 2,086 1.8

Kerry Group Consumer Staples – Food Producers 1,978 1.8

Burford Capital Financials – Investment Banking & Brokerage Services 1,966 1.7

SGS Industrials – Industrial Support Services 1,889 1.7

THG Consumer Staples – Personal Care, Drug & Grocery Stores 1,683 1.5

Thirty largest investments 109,005 96.5

Londonmetric Property Real Estate – Real Estate Investment Trusts 1,603 1.4

Wizz Air Holdings Consumer Discretionary – Travel & Leisure 1,590 1.4

ASOS Consumer Discretionary – Retailers 570 0.5

Investors Securities Company Limited N/A (subsidiary undertaking) 250 0.2

Total investments 113,018 100.0

Report and Accounts 2023 | 19

Strategic Report

Our Approach

Environmental, Social and Governance (‘ESG’) issues are

the three central factors in measuring sustainability and

can present both opportunities and threats to the long-term

investment performance, the Company aims to deliver to

shareholders. The Board is therefore committed to taking a

responsible approach to ESG matters, for which there are two

strands. Firstly there are the Company’s own responsibilities

on matters such as governance and secondly, the impact it

has through the investments that are made on its behalf by

its Manager.

The Company’s compliance with the AIC Code of Corporate

Governance is detailed in the Corporate Governance Statement

on pages 39 to 41. In addition, the Principal Policies statement

on pages 29 and 30 includes the Company’s policies towards

board diversity and tenure, integrity and business ethics and

prevention of the facilitation of tax evasion.

The Board recognises that the most material way in which

the Company can have an impact is through responsible

ownership of its investments. The Manager engages actively

with the management of investee companies to encourage

that high standards of ESG practice are adopted. The Manager

has long been at the forefront of the investment industry in

its consideration of these issues and has one of the longest

established and largest teams focused solely on ESG.

Responsible Ownership

Engaging actively with companies on significant ESG matters,

to reduce risk, improve performance, encourage best practice

and underpin long-term investor value forms a fundamental part

of the Manager’s approach towards responsible investment.

Engagement in the first instance rather than simply divesting or

excluding investment opportunities is also part of this approach.

The Manager’s Corporate Governance Guidelines set out its

expectations of the management of investee companies in terms

of good corporate governance. This includes the affirmation of

responsibility for reviewing internal business ethics policies and

ensuring that there is an effective mechanism for the internal

reporting of wrongdoing, whether within the investee company

itself, or involving other parties, such as suppliers, customers,

contractors or business partners.

The Manager is also a signatory to the United Nations

Principles for Responsible Investment (‘UNPRI’) under which

signatories contribute to the development of a more sustainable

global financial system. As a signatory, the Manager aims to

incorporate ESG factors into its investment processes.

ESG and the Investment Process

The Manager’s Responsible Investment team works closely

with the Portfolio Manager to ensure that those performing

the work on individual investment opportunities for the

Company are well informed in what to look for in relation

to the ESG aspects of their analysis. Specialism within the

Responsible Investment team allows the Portfolio Manager

to talk to those who understand the key ESG issues relating

to a particular sector. Where possible, internal research is

cross-referenced against external sources, for example MSCI

ESG research. The Responsible Investment team has over

the last year hosted many internal seminars and workshops

for the investment teams, covering new developments across

a wide range of topics to ensure that the portfolio managers

were aware of the key issues. In recent years, the investment

process has been further developed to incorporate the

assessment of sustainability issues, while scores for the E,

S and G performance elements of potential investments are

taken into account in the derivation of the fair value of existing

and potential new holdings for the Company. ESG analysis

is therefore a key part of our quality scoring of companies

and overall risk assessment. In relation to sustainability, the

portfolio management team will note if individual investments

are aligned explicitly with any of the UN Sustainable

Development Goals. Details of these goals can be found at

www.un.org/sustainabledevelopment/sustainable-development-

goals/. The Portfolio Manager and Responsible Investment

team’s research work is used to: initiate discussions with

companies; clarify the Portfolio Manager’s understanding

of the issues involved; create a dialogue; and encourage

higher standards where appropriate. In this, the Manager may

occasionally join with other major investors in order to be a yet

more powerful force to drive change.

As stewards of more than £100 million of net assets, we support positive change and the Company

benefits from the Manager’s leadership in this field.

Sustainability and ESG

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20 | CT UK High Income Trust PLC

Strategic Report

Portfolio Case Study

Schneider Electric (‘SE’)

Schneider Electric (‘SE’) is a French multinational company,

providing global energy management and automation solutions.

Its products help bolster industries’ energy resilience, from

data centres and buildings to infrastructure. Beyond the

sustainability of its product portfolio, the company is peer

leading on climate initiatives and targets, demonstrated by its

science-based initiative approved targets with both interim,

long-term and net zero targets to support its commitment.

While Scope 3 emissions (which are the result of activities

from assets in the company’s value chain) represent around

90% of the company’s footprint, with the majority comprising

its use of sold products, the company has a strategy to

decarbonise its downstream emissions through innovation in

eco-design, substituting higher-emitting gases and supporting

customers through the measurement of their environmental

impacts. The company continues to focus on growing its clean

technology profile. It has set a target to achieve 80% of its

revenues generated from ‘impact revenues’ by 2025, a term

it used to describe revenues coming from solutions that bring

energy, climate, or resource efficiency to its customers without

generating any significant harmful impact to the environment.

Engagement

During the year ended 31 March 2023, the Responsible Investment team engaged 24 times with management in the Company’s

investment portfolio, across 5 countries. Following its engagement, the Manager recorded 5 instances of positive changes at

these companies. The most common topics for discussion were labour standards, followed by corporate governance and human

rights. Analysis of this engagement follows.

2023 engagement analysis

Labour Standards 26%

Corporate Governance 20%

Human Rights 18%

Climate Change 15%

Public Health 10%

Environmental Stewardship 8%

Business Conduct 3%

Source: Columbia Threadneedle Investment Business Limited

Report and Accounts 2023 | 21

Strategic Report

Engagement examples in the reporting period

Compass Group (Consumer Discretionary

– Consumer Services)

Issue: Public Health

In October 2022 the Manager welcomed Compass Group’s newly published Global

Supplier Code of Conduct which outlined expectations for suppliers in relation to food

quality and safety. It is clear they have renewed their efforts with regard to supply chain

due diligence and the Manager requested a call to understand their audit processes in

more depth, particularly how the findings are integrated for action. The Manager came

away from the call reassured as the team could clearly explain the due diligence process

and responses. It is actively working on establishing traceability and monitoring of key

risk areas in the supply chain and the Manager would like to see a clearer roadmap. The

Manager encouraged the development and communication of a formal escalation process

in cases of breaches of the supplier code of conduct and it looks forward to following up

with the company as it extends its monitoring program in due course.

GSK (Health Care – Pharmaceuticals &

Biotechnology)

Issue: Public Health

The Manager spoke to the Chief Global Health Officer, head of Corporate Responsibility

and Corporate Reporting and Investor Relations on access-to-medicine strategies and

ESG. GSK scored first place on the Access to Medicine Index, as they have since the

launch of the index, which is a remarkable achievement in the Manager’s view. Regarding

access to medicine, the company stated they want to reach 2.5 billion people over the

next 10 years and spend £10 billion on new medicines for malaria and HIV. The Manager

is pleased with the company’s executive remuneration being linked to access-strategies

and the companies’ broader targets on ESG. They have identified 6 material ESG areas

which are; access, global health and health security, Diversity Equity and Inclusion,

net zero, product governance and ethical standards. Overall, the conversation was

constructive, and the Manager regards GSK’s efforts on access-strategies as positive.

Rio Tinto (Basic Materials – Industrial

Metals & Mining)

Issue: Environmental Stewardship

Rio Tinto is one of the largest mining companies in the world, extracting a range of

commodities in six continents. Multiple mining assets are situated on land traditionally

owned or used by Indigenous Peoples, leading to many mining sites being near culturally

significant sites. In 2020 several significant aboriginal rock shelters were destroyed in

Juukan Gorge, Australia.

Following a shakeup of the company’s board in the wake of this disaster and the

appointment of a new chairman in April 2022, we have seen a real push from the

company on proactively engaging on Environmental & Social issues. In June 2022 the

Manager met with him, through the UK’s Investor Forum, to discuss a range of ESG

issues. Their CEO attended the launch of the new Mining 2030 initiative in January this

year, which aims to examine the sustainability challenges facing the sector and to develop

a better understanding of how it can grow to supply the transition metals the world needs

to decarbonise, whilst retaining its licence to operate and avoiding negative impacts on

the environment and communities. The second iteration of their Communities and Social

Impact report, launched as a response to the company’s shortcomings that led to Juukan

Gorge’s destruction, also shows ongoing progress and should be noted for its active

engagement approach and honest disclosure of feedback.

Voting on portfolio investments

As noted previously, the Manager’s Corporate Governance

Guidelines set out expectations of the boards of investee

companies in terms of good corporate governance. The Board

expects to be informed by the Manager of any sensitive voting

issues involving the Company’s investments. In the absence of

explicit instructions from the Board, the Manager is empowered

to exercise discretion in the use of the Company’s voting rights

and reports to the Board on its voting record. The Manager will

vote on all investee company resolutions.

The Manager is a signatory of the UK Stewardship Code.

Its statement of compliance can be found on the Manager’s

website at columbiathreadneedle.com.

We expect the Company’s shares to be voted on all holdings

where possible. During the financial year, the Manager voted at

36 meetings of investee companies held by the Company. The

Manager did not support management’s recommendations on at

least one resolution at approximately 32% of all meetings. With

respect to all items voted, the Manager supported over 94.5%

of all management resolutions. One of the most contentious

voting issues remained remuneration. Either by voting

against or abstaining, the Manager did not support 32% of all

management resolutions relating to pay, often due to either poor

disclosure or a misalignment of pay with long-term performance.

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Climate Change

Of all the ESG issues the Manager considers, climate change

is one of the most important, both in terms of the scale of

potential impact and in how widespread this impact could be

across sectors and regions. The Company expects the Manager

to incorporate considerations around climate change risks and

opportunities in its investment processes.

As an investment trust company, the Company is not required

to report against the recommendations of the Task Force on

Climate-related Financial Disclosures unlike other premium

listed “trading” companies. However, as follows, the Company

is disclosing its assessment of the weighted-average carbon

intensity (‘WACI’) of its investments. This measures the

amount of greenhouse gas emissions produced by each

investee company, per US$1m of revenue they generate.

This is then aggregated for the Company as a whole, using

the portfolio weights of the companies, and compared with

the benchmark.

The WACI does not provide a full picture of climate risks,

but it is a valuable starting point both for analysis and for

shareholder dialogue. The chart highlights that the Company’s

portfolio of investments is significantly less carbon intensive

than its benchmark.

Weighted-average carbon intensity

100

150

Tons CO2e/sales $m

CT UK High Income Trust PLC

FTSE All-Share

Source: Columbia Threadneedle Investment Business Limited

2023

Last year, the Russian invasion of Ukraine and extreme

weather events reinforced the importance of creating a more

resilient future. Climate change, biodiversity loss and human

rights are all issues that require urgent action. It is these

areas that engagement focused on in 2022 and will continue

to be of focus in 2023.

Climate-related engagement activity will be wide-ranging, but

one area of focus will be on implementation strategies. Many

firms in emissions-intensive sectors have set targets, but

often face significant barriers to achieving these. We will work

with companies to understand how they are aligning factors

such as capital expenditure plans with their targets, as well

as governance oversight and links to executive pay. We will

also look at physical climate risks, focusing particularly on

how heatwave and drought episodes in Europe are impacting

on companies’ ability to do business.

The continuing loss of biodiversity will bring about significant

economic loss, and impact food and water security, as well as

human health and the spread of disease. The Manager has

been part of the Lead Investor Group setting up the Nature

Action 100 collaborative engagement initiative, which had a

soft launch at COP15. Investors will engage companies in

key sectors to ensure they are taking timely and necessary

actions to protect and restore nature and ecosystems. It also

aims to engage policymakers on the outcomes of COP15.

Effective supply chain management practices are essential to

ensuring the protection of human rights. In 2023, the Manager

will continue to engage with corporates on implementing

human rights due diligence across their supply chains to

understand and mitigate adverse impacts on people. This

will lead to more stable and resilient operations, a stronger

license to operate, and better stakeholder relationships.

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Strategic Report

Section 172 Statement

Under Section 172 of the Companies Act 2006, the Directors

have a duty to act in the way they consider, in good faith, would

be most likely to promote the success of the Company for the

benefit of its members as a whole, and in doing so, have regard

(amongst other matters) to:

• the likely consequences of any decision in the long term;

• the interests of the Company’s shareholders;

• the need to foster the Company’s business relationships

with suppliers, customers and others;

• the impact of the Company’s operations on the community

and environment;

• the desirability of the Company maintaining a reputation for

high standards of business conduct; and

• the need to act fairly as between members of the Company.

As explained on page 8, the Company is an externally managed

investment company and has no employees, customers

or premises.

The Board believes that the optimum basis for meeting its duty

to promote the success of the Company is by appointing and

managing third parties with the requisite performance records,

resources, infrastructure, experience and control environments

to deliver the services required to achieve the investment

objective and successfully operate the Company. By developing

strong and constructive working relationships with these

parties, the Board seeks to ensure high standards of business

conduct are adhered to at all times and service levels are

enhanced whenever possible. This combined with the careful

management of costs is for the benefit of all shareholders who

are also key stakeholders.

As set out on page 8, the Board’s principal working relationship

is with the Manager which is responsible for the management

of the Company’s assets in line with the investment objective

and policy set by the Board. The Manager also provides

ancillary functions such as administration, marketing,

accounting and company secretarial services to the Company

and acts as the AIFM.

The Board works closely with the Manager and oversees the

various matters which have been delegated to it, and to ensure

the Company’s daily operations run smoothly for the benefit of all

shareholders. The portfolio activities undertaken by our Manager

are set out in the Manager’s Review on pages 11 to 13.

While the Company’s direct impact on the community and

environment is limited, its indirect ESG impact occurs through

the businesses in which it invests. The Board gives effect

to this through the Manager’s Responsible Investment

approach which is set out on pages 19 to 22. The Board is

very supportive of the Manager’s approach, which focuses

on engagement with the investee companies on ESG issues

and how these link with the United Nations Sustainable

Development Goals (‘SDGs’). Information on the annual

evaluation of the Manager, to ensure its continued appointment

remains in the best interests of shareholders, is set out on

page 43.

In addition to the Company’s shareholders, Manager and

bankers, other key stakeholders include its service providers

such as the Custodian and Depositary, Broker and Registrar.

The Board receives regular reports from the Company’s key

service providers on an ongoing basis and evaluates them to

ensure expectations on service delivery are met.

The Board places great importance on communication with

shareholders and further information is set out on page 9.

The Company’s stakeholders are always considered when the

Board makes decisions and examples include:

• Dividends/capital repayments.

The Board recognises that the distribution levels on the

Company’s shares are important to shareholders. Following

the payment of the fourth interim dividend and capital

repayment with respect to the financial year to 31 March

2023, total dividends/capital repayments total 5.51p per

share. This represents an increase of 1.1% compared to

the prior year. The payment of the dividend to Ordinary

shareholders was, in part, made possible by the use of

some of the revenue reserve that the Company had built

up over the years. Since the COVID-19 pandemic and when

there was a significant reduction in the level of dividends

being paid by UK companies, it has shown how effectively

the investment trust structure can work with the use of the

revenue reserve to help supplement revenue earnings to

pay dividends when there is a shortfall in revenue income.

This was again the case this year, however it is a key

objective of the Board and Manager to return to a covered

dividend and to rebuild the revenue reserve. At 31 March

2023, the yield on the Ordinary shares and B shares was

6.7% and 6.5% respectively, as compared to the yield on

the FTSE All-Share Index of 3.6% at that time.

Promoting the Success of the Company

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• Costs

One of the Company’s KPIs is cost efficiency and the

Board monitors costs closely and strives to keep these as

competitive as possible for the benefit of our shareholders.

During the financial year, a change to the investment

management fee was agreed between the Board and the

Manager and with effect from 1 April 2022, the investment

management fee was reduced from 0.65% to 0.60% per

annum of the net asset value of the Company, which will

help our ongoing charges.

• Borrowings

During the financial year, the Company refinanced its

borrowings and entered into a three-year unsecured

revolving credit facility (‘RCF’) with The Royal Bank of

Scotland International Limited (‘RBS’) for £15 million. This

replaced its £7.5 million RCF with Scotiabank (Ireland)

Designated Activity Company and its £7.5 million unsecured

term loan with Scotiabank Europe plc, both of which

matured on 28 September 2022. It is believed that the

new facility will provide suitable flexibility for the Board and

Manager to utilise borrowing when investment opportunities

arise or, conversely, reduce borrowing dependent on market

conditions and outlook.

The Manager provides regular loan covenant compliance

certificates to RBS and loan covenants are also reviewed

by the Board.

• Board succession plan

The Board is committed to ensuring that its composition is

compliant with best corporate governance practice under

the AIC Code, including guidance on tenure.

During the financial year, the Board has continued to

progress its succession plan. Having served on the Board

for nine years, John Evans, the chairman, retired following

the conclusion of the AGM on 20 July 2022. As shareholders

voted at the AGM to continue the Company, a recruitment

process was then undertaken in order to recruit and appoint

a new non-executive Director. As such, on 24 November

2022, the Board appointed Angus Pottinger as a non-

executive Director. His biography is included on page 31

and the process which was followed is set out on page 42.

An objective of the succession plan has been to ensure an

adequate level of continuity and experience on the Board,

thereby acting in the best interests of stakeholders.

• Continuation measurement period

As explained in the Annual Report and Financial Statements

to 31 March 2022, the Board proposed to shareholders to

reduce the period stipulated in the Company’s Articles of

Association over which the Company’s performance against

the FTSE All-Share Index was measured. At the AGM on

20 July 2022, approval was granted by shareholders to

reduce the existing five year performance period to three

years and therefore should the net asset value total return

of the Ordinary shares not be equal to or greater than the

total return performance of the FTSE All-Share Index for the

three years to 31 March 2025, a continuation vote will be

held at the 2025 Annual General Meeting. There has been

no change to the portfolio management process despite the

shorter performance period, but should the performance

hurdle not be met, this change will allow shareholders an

opportunity to consider the life of the Company sooner than

otherwise would have been the case.

• Retail investors

A significant proportion of the Company’s shareholders are

retail investors who invest through savings or execution-

only platforms. These include those who invest through

the Manager’s retail savings plans and the Board remains

focused with the Manager on the optimal delivery of the

Company’s investment proposition for the benefit of all

shareholders. Now that Child Trust Fund accounts (which

were launched in 2005), are reaching maturity, the Board’s

objective is to retain as many of these young investors

as possible. Prior to account maturity the Manager writes

to their parents setting out their options and currently

retention rates are in line with expectations. The Manager

remains committed to its savings plans and its relationship

with its customers and has invested significantly in its

offering to enhance the digital experience in order to meet

its customers’ expectations. Columbia Threadneedle

Investments, the new owner of the Manager, has also

expressed its commitment to the investment trust business

and the savings plans.

• Institutional shareholders, wealth managers and IFAs

The Manager has a team dedicated to fostering good

relations with institutional shareholders, wealth managers

and independent financial advisers and keeping investors

regularly informed, with the aim of promoting the Company’s

investment proposition and improving the rating of the

Company’s share prices. This team organises meetings with

these parties as well as preparing webinars, interviews and

videos which are shared through various media channels.

The team gathers feedback and answers any queries

in relation to the Company and its investment strategy.

Feedback from these activities is reported regularly to

the Board.

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Strategic Report

As an investment company, investing primarily in listed

securities, most of the Company’s principal risks and

uncertainties that could threaten the achievement of its

objective, strategy, future performance, liquidity and solvency

are market-related.

A summary of the Company’s risk management and internal

controls arrangements is included within the Report of

the Audit Committee on pages 44 to 47. By means of the

procedures set out in that summary, the Board has established

an ongoing process for identifying, evaluating and managing

the significant risks faced by the Company. The Board also

considers emerging risks which might affect the Company

and related updates from the Manager on such risks are also

considered. During the year emerging risks included the outlook

for inflation and the war in Ukraine. Any emerging risks that are

identified and that are considered to be of significance would

be included on the Company’s risk register with any mitigations.

These significant risks, emerging risks and other risks are

regularly reviewed by the Audit Committee and the Board. While

the effect of the COVID-19 pandemic appears to have eased,

increased market volatility due to recent macroeconomic and

geopolitical concerns have been considered and is referred

to in Financial Risk. They have also regularly reviewed the

effectiveness of the Company’s risk management and internal

control systems for the period.

As was explained in the 31 March 2022 Annual Report and

Financial Statements, the Company’s Manager, which was

part of BMO GAM (EMEA) was acquired by Ameriprise and

the integration of its business with Columbia Threadneedle

Investments is now well advanced. The Board looks favourably

upon this transaction and there has been little change for your

Company. Nevertheless, an acquisition such as this introduces

some uncertainty, until the integration of systems is fully

implemented. A critical milestone is the move to a new order

management system, Aladdin, which is widely regarded as

market leading. Therefore the Board will continue to monitor

this risk closely.

The principal risks and uncertainties faced by the Company,

and the Board’s mitigation approach, are described on

pages 26 and 27.

Note 21 to the financial statements provides detailed

explanations of the risks associated with the Company’s

financial instruments and their management.

Principal Risks and Uncertainties

and Viability Statement

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Principal Risks and Uncertainties Mitigation

Financial Risk

The Company’s assets consist mainly of listed

equity securities and its principal financial

risks are therefore market-related and include

market risk (comprising currency risk, interest

rate risk and other price risk), liquidity risk and

credit risk.

Increased uncertainty in markets since the

COVID-19 pandemic, the war in Ukraine and

macroeconomic and geopolitical concerns has

led to volatility in the Company’s NAV.

Climate change is likely to have an impact on

some of our investee companies in the coming

years potentially affecting their operating

models for example, supply chains and

energy costs.

Increase in overall risk during the

year, given the war in Ukraine and

macroeconomic and geopolitical

concerns.

The Board regularly considers the composition and diversification of the

Investment Portfolio and considers individual stock performance together with

purchases and sales of investments. Investments and markets are discussed

in detail with the Manager on a regular basis.

Engagement on environmental, social and governance matters is undertaken

by the Manager and its approach is explained on pages 19 to 22.

The Board has, in particular, considered the impact of heightened market

volatility since the COVID-19 pandemic, macroeconomic and geopolitical

concerns and inflation. As a closed-end investment company, it is not

constrained by asset sales to meet redemptions so can remain invested

through volatile market conditions and is well suited to investors seeking

longer term returns.

An explanation of these risks and the way in which they are managed are

contained in note 21 to the financial statements.

Investment and strategic risk

Incorrect strategy, asset allocation, stock

selection, inappropriate capital structure,

insufficient monitoring of costs, failure to

maintain an appropriate level of discount/

premium and the use of gearing could all lead

to poor returns for shareholders including

impacting the capacity to pay dividends.

Increase in overall risk during the

year, given the war in Ukraine and

macroeconomic and geopolitical

concerns.

The Company’s objective and investment policy and performance against peers

and the benchmark are considered by the Board at each meeting and strategic

issues are considered regularly. The Investment Portfolio is diversified and

comprises listed securities and its composition is reviewed regularly with the

Board. The Manager’s Investment Risk team provides oversight on investment

risk management.

Market intelligence is maintained via the Company’s broker and the

effectiveness of the marketing strategy together with the level of discount to

NAV at which the Company’s shares trade are also reviewed at each meeting.

The Manager also meets with major shareholders.

The Board regularly considers ongoing charges combined with underlying

dividend income from portfolio companies and the consequent dividend paying

capacity of the Company.

Regulatory

Breach of regulatory rules could lead to the

suspension of the Company’s stock exchange

listing, financial penalties, or a qualified

audit report. Breach of section 1158 of the

Corporation Tax Act 2010 could lead to the

Company being subject to tax on capital gains.

Changes to tax regulations could alter the

attractions of the Company’s B shares.

No change in overall risk

The Board liaises with advisors to ensure compliance with laws or regulations.

The Manager and its Operational Risk Management team provide regular

reports to the Board and Audit Committee on their monitoring and oversight

of such rules and are reviewed by the Board. This includes the conditions to

maintain investment trust status including the income distribution requirement.

The Board has access to the Manager’s Head of Operational Risk Management

and requires any significant issues directly relevant to the Company to be

reported immediately.

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Strategic Report

Principal Risks and Uncertainties Mitigation

Operational

Failure of the Manager as the Company’s

main service provider or disruption to its

business, or that of an outsourced or third

party service provider, could lead to an inability

to provide accurate reporting and monitoring

or a misappropriation of assets leading to a

potential breach of the Company’s investment

mandate or loss of shareholders’ confidence.

This risk includes failures or disruption as a

consequence of external events such as the

COVID-19 pandemic.

External cyber attacks could cause such failure

or could lead to the loss or sabotage of data.

No change in overall risk but due

to the integration with Columbia

Threadneedle’s systems, this risk

remains heightened

The Board meets regularly with the management of the Manager and its

Operational Risk Management team to review internal control and risk reports

which includes oversight of its own third party service providers. The Manager’s

appointment is reviewed annually and the contract can be terminated with six

months’ notice. The Manager has a business continuity plan in place to ensure

that it is able to respond quickly and effectively to an unplanned event that

could affect the continuity of its business.

The Manager has outsourced trade processing, valuation and middle office

tasks and systems to State Street Bank and Trust Company (‘State Street’)

and supervision of such third party service providers, including SS&C who

administer the Manager’s savings plans, has been maintained by the Manager.

This includes the review of IT security and heightened cyber threats.

Further to the acquisition of the Company’s Manager by Ameriprise, the

Board continues to monitor the integration of its business with Columbia

Threadneedle Investments. Comfort is taken from its long-term financial

strength and resources and commitment towards the investment trust

business and savings plans.

The Manager also closely monitors the performance of its technology platform

to ensure it is functioning within acceptable service levels.

Custody risk

Safe custody of the Company’s assets may

be compromised through control failures by

the custodian.

No change in overall risk

The Board receives quarterly reports from the Depositary confirming safe

custody of the Company’s assets and cash and holdings are reconciled to

the Custodian’s records. The Custodian’s internal controls reports are also

reviewed by the Manager and key points reported to the Audit Committee.

The Board also receives periodic updates from the custodian on its own

cyber-security controls.

The Depositary is specifically liable for loss of any of the Company’s assets

that constitute financial instruments under the AIFMD.

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Viability assessment and statement

In accordance with the UK Corporate Governance Code, the Board

is required to assess the future prospects for the Company and

has considered that a number of characteristics of its business

model and strategy were relevant to this assessment:

• The Board looks to long-term outperformance rather than

short-term opportunities.

• The Company’s investment objective, strategy and policy,

which are subject to regular Board monitoring, mean that

the Company is invested primarily in liquid listed securities

and that the level of borrowing is restricted.

• The Company is a listed closed-end investment trust, whose

shares are not subject to redemptions by shareholders.

• Subject to shareholder continuation votes, in the event that

the net asset value total return performance of the Company

is less than that of the FTSE All-Share Index over the relevant

period, the Company’s business model and strategy is not

time limited. The next such performance measurement

period will cover the three years to 31 March 2025.

Also relevant were a number of aspects of the Company’s

operational arrangements:

• The Company retains title to all assets held by the

Custodian under the terms of a formal agreement with the

Custodian and Depositary.

• The borrowing facility, which remains available until

September 2025, is also subject to a formal agreement,

including financial covenants with which the Company

complied in full during the year.

• Revenue and expenditure forecasts are reviewed by the

Directors at each Board Meeting.

• Cash is held with banks approved and regularly reviewed by

the Manager.

• The operational robustness of key service providers and

the effectiveness of alternative working arrangements.

• That alternative service providers could be engaged at

relatively short notice if necessary.

In considering the viability of the Company, the Directors

carried out a robust assessment of the principal risks and

uncertainties which could threaten the Company’s objective

and strategy, future performance and solvency. This included

the impact of market volatility and a significant fall in equity

markets on the Company’s investment portfolio. These

risks, their mitigations and the processes for monitoring

them are set out on pages 25 to 27 on Principal Risks and

Uncertainties, on pages 44 to 47 in the Report of the Audit

Committee and in note 21 of the financial statements.

The Directors have also considered:

• The level of ongoing charges incurred by the Company

which are modest and predictable and total 1.02% of

average net assets.

• Future revenue and expenditure projections.

• Its ability to meet liquidity requirements given the

Company’s investment portfolio consists mainly of readily

realisable listed equity securities which can be realised if

required.

• The ability to undertake share buybacks if required.

• Whether the Company’s objective and investment policy

continue to be relevant to investors.

• The effect of significant future falls in investment

values and the ability to maintain dividends and capital

repayments, particularly given the impact of increased

market volatility since the COVID-19 pandemic, the war in

Ukraine and macroeconomic and geopolitical concerns.

As the Company’s performance measurement period was

reduced from five years to three years (following shareholder

approval at the 2022 AGM), these matters were assessed over

a three year period to May 2026, and the Board will continue

to assess viability over three year rolling periods. As part

of this assessment the Board considered stress tests and

scenarios which considered the impact of severe stock market

volatility on shareholders’ funds and declines in income over

a three year period. The results demonstrated the impact on

the Company’s net assets and its expenses and its ability

to meet its liabilities over that period. A rolling three year

period represents the horizon over which the Directors believe

they can form a reasonable expectation of the Company’s

prospects, balancing the Company’s financial flexibility and

scope with the current outlook for longer-term economic

conditions affecting the Company and its shareholders.

Based on their assessment, and in the context of the Company’s

business model, strategy and operational arrangements set

out above, the Directors have a reasonable expectation that

the Company will be able to continue in operation and meet its

liabilities as they fall due over the three year period to May 2026.

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Strategic Report

Investment Policy

In pursuit of its objective, the Company invests predominantly

in UK equities and equity related securities of companies

across the market capitalisation spectrum.

The objective will be to achieve a total return in excess of

that of the FTSE All-Share Index. The Manager will approach

investment portfolio construction with the aim of maintaining a

diversified portfolio with approximately 40 holdings at any given

time. No single investment in the portfolio may exceed 10 per

cent of the Company’s gross assets at the time of purchase.

In addition, the Manager expects few individual holdings to

exceed five per cent of the Company’s gross assets at the time

of purchase. There are no maximum levels set for exposures

to sectors.

Income may be enhanced from the investment portfolio by

writing call options, but only where the portfolio has an existing

holding and the holding is greater than the amount of stock

subject to the call option. The percentage of the portfolio that

may be used to generate call premium is limited to 5 per cent

by value at any one time. The Company may use derivatives for

efficient portfolio management from time to time.

The Company has the power under its Articles of Association

to borrow an amount up to 100 per cent of the Company’s

Adjusted Capital and Reserves. The Directors currently intend

that the aggregate borrowings of the Company will be limited

to approximately 20 per cent of the Company’s gross assets

immediately following drawdown of any new borrowings. The

Directors will however retain flexibility to increase or decrease the

level of gearing to take account of changing market circumstances

and in pursuit of the Company’s investment objectives.

As required by the Listing Rules, the Company has a policy to

invest no more than 15 per cent of gross assets in other listed

investment companies.

The Company’s Benchmark

The Company’s benchmark is the FTSE All-Share Index. From

launch on 1 March 2007, the Company’s benchmark was the

FTSE All-Share Capped 5% Index but in order to simplify the

measurement of the Company’s performance, at the Company’s

Annual General Meeting on 5 July 2018 shareholders approved

the proposal to change the Company’s benchmark to the FTSE

All Share Index.

Gearing Policy

As explained in the Investment Policy, the Company has the

flexibility to borrow and the Board has set a gearing limit. The

Board receives recommendations on gearing levels from the

Manager and it is responsible for setting the gearing range

within which the Manager may operate.

The Company has a £15 million unsecured revolving credit

facility with The Royal Bank of Scotland International Limited,

which is available until 28 September 2025 and is described

in more detail in the notes to the financial statements. At

31 March 2023, borrowings totalling £12 million had been

drawn down.

Dividend/Capital Repayment Policy

Within the Company’s investment objective is the aim to

provide an attractive return to shareholders in the form of

dividends and/or capital repayments.

In determining dividend payments, the Board takes account of

income forecasts, brought forward revenue reserves, prevailing

inflation rates, the Company’s dividend payment record and

the Corporation Tax rules governing investment trust status.

Dividends can also be paid from capital reserves where the

balance on this reserve is positive. At the same time as

dividend payments are made to Ordinary shareholders, capital

repayments of the same amount are made to B shareholders

from the special capital reserve. Risks to the dividend policy

have been considered as part of the Principal Risks and

Uncertainties and Viability statement on pages 25 to 28 and

include financial risks leading to a deterioration in the level of

income received by the Company or a significant change to the

Company’s regulatory environment.

Dividends/capital repayments are currently paid quarterly in

August, November, February and May.

In the financial year to 31 March 2024 the Board is strongly

minded to try and maintain the annual level of dividend/capital

repayment.

Buy backs/Discount Policy

Share buy backs help reduce the volatility of the discount and

enhance the net asset value per share for continuing shareholders.

While the Directors will at all times retain discretion over

whether or not to repurchase shares, it will be the Company’s

policy, in the absence of unforeseen or extreme circumstances

and subject to the aim of maintaining the Ordinary share:

B share ratio within the range (72.5% : 27.5% and 77.5% :

22.5%), to repurchase shares of either class when there are

net sellers and the market price stands at a discount to net

asset value of 5% or more. The Board may, if it considers it

to be in the best interests of the Company, amend this ratio

from time to time. However, the Board will always be mindful

of any impact on the level of revenue available for the Ordinary

shares. Shares will not be bought back at a premium to net

asset value. Shares which are bought back by the Company

Principal Policies

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30 | CT UK High Income Trust PLC

Strategic Report

may be cancelled or may be held in treasury. There is no limit

on the amount of shares the Company can hold in treasury.

Shares held in treasury may be resold at a price not less than

the net asset value per share.

Prevention of the Facilitation of Tax Evasion

The Board is fully committed to complying with the UK’s

Criminal Finances Act 2017, designed to prevent tax evasion

and the facilitation of tax evasion in the jurisdictions in which

the Company operates. The policy is based upon a risk

assessment undertaken by the Board and professional advice

is sought as and when deemed necessary.

Taxation

The policy towards taxation is one of full commitment to

complying with applicable legislation and statutory guidelines.

The Company has received approval from HMRC as an

investment trust under Section 1158 of the Corporation Tax

Act 2010 (“Section 1158”) and has since continued to comply

with the eligibility conditions such that it does not suffer UK

Corporation Tax on capital gains. The Manager ensures that the

Company submits correct taxation returns annually to HMRC;

settles promptly any taxation due; and claims back, where

possible, taxes suffered in excess of taxation treaty rates on

non-UK dividend receipts.

Board Diversity and Tenure

The Board is composed solely of non-executive Directors and

its approach to the appointment of non-executive Directors is

based on its belief in the benefits of having a diverse range of

experience, skills, length of service and backgrounds, including

gender. The Board is conscious of the diversity targets set

out in the FCA Listing Rules and the Board complies with the

UK Corporate Governance Code and AIC Code in appointing

appropriately diverse, independent non-executive Directors

who set the operational and moral standards of the Company.

The Board will always appoint the best qualified person for

the role and will not discriminate on the grounds of gender,

race, ethnicity, socio-economic background, religion, sexual

orientation, age or physical ability. The Board is committed to

maintaining the highest levels of corporate governance in terms

of independence and would normally expect the Directors to

serve for a nine-year term although this may be adjusted for

reasons of flexibility and continuity.

In accordance with Listing Rule 9.8.6R(9), (10) and (11) the

Board has provided the following information in relation to

its diversity; the information for which has been obtained

through the completion of questionnaires by the individual

Directors. As is shown, the Company does not meet the

targets, which came into force for the financial year ending 31

March 2023. The Company’s board, with four non-executive

directors, is relatively small which makes achieving these

targets more challenging.

Board Gender as at 31 March 2023

(1)

Number of

Board

members

Percentage of

the Board

Number of

senior positions

on the Board

Men 3 75% 2

Women 1 25%

(2)

–

(3)

Not specified/

prefer not to say

– – –

(1)

The Company has opted not to disclose against the number of Directors in

executive management as this is not applicable for an investment trust which

do not have the roles of CEO or CFO.

(2)

This does not meet the Listing Rules target of 40%.

(3)

The position of the Chairman of the Audit Committee is held by a woman however

this is not currently defined as a senior position under the Listing Rules.

Board Ethnic Background as at 31 March 2023

(1)

Number of

Board

members

Percentage of

the Board

Number of

senior positions

on the Board

White British or other

White (including

minority-white groups)

(2)

100% 2

Mixed/Multiple

Ethnic Groups

– – –

Asian/Asian British – – –

Black/African/

Caribbean/

Black British

– – –

Other ethnic group,

including Arab

– – –

Not specified/

prefer not to say

– – –

(1)

The Company has opted not to disclose against the number of Directors in

executive management as this is not applicable for an investment trust which

do not have the roles of CEO or CFO.

(2)

This does not meet the Listing Rules target of at least 1 individual from a

minority ethnic background.

Integrity and Business Ethics

The Board applies a strict anti-bribery and anti-corruption policy

insofar as it applies to any directors or employee of the Manager

or any other organisation with which the Company conducts

business. The Board also ensures that adequate procedures

are in place and followed in respect of third-party appointments,

acceptance of gifts, hospitality and similar matters.

The Strategic Report, contained on pages 5 to 30, has been

approved by the Board of Directors.

By order of the Board

For Columbia Threadneedle Investment Business Limited

Company Secretary

6th Floor

Quartermile 4

7a Nightingale Way

Edinburgh EH3 9EG

31 May 2023

Report and Accounts 2023 | 31

Governance

Andrew Watkins

Chairman of the Board and

Nomination Committee

Appointed on 29 June 2017 and as Chairman

on 20 July 2022.

Experience and contribution: He has worked

in the financial services industry for over

40 years and was head of Client Relations for

Investment Trusts at Invesco from 2004 until

his retirement in June 2017.

Other appointments: Andrew is currently

a non-executive director and chairman of

Ashoka India Equity Investment Trust plc and

a non-executive director of Chelverton UK

Dividend Trust PLC, Baillie Gifford European

Growth Trust plc and Consistent Unit Trust

Management Ltd.

Stephen Mitchell

Senior Independent Director and

Chairman of the Engagement and

Remuneration Committee

Appointed on 6 May 2020 and as Senior

Independent Director on 20 July 2022

and as Chairman of the Engagement and

Remuneration Committee on 2 December

2020.

Experience and contribution: He has worked

in investments for 40 years, most recently

as a global equity specialist, previously

on Japanese and Asia-Pacific equities. He

worked at Flemings then JPMorgan Asset

Management and Private Bank for 24 years,

subsequently at Caledonia Investment Trust

running a global equity income fund and

then Jupiter Asset Management. Latterly

he also covered investment strategy and

multi-asset allocation.

Other appointments: Stephen is currently a

Trustee of National Trust for Scotland and

chair of its investment committee, and a

member of the investment committee at

Westminster Almshouses.

Helen Galbraith (nee Driver)

Chairman of the Audit Committee

Appointed on 6 May 2020 and as Chairman of

the Audit Committee on 27 July 2021.

Experience and contribution: Helen has over

20 years’ experience in the Insurance and

Asset Management industry as Head of

Investor Relations at Aviva plc, Head of Global

Equities at Aviva Investors and managing UK

equities as Investment Director at Standard

Life Investments. Helen is the founder of

Moneyready, an online financial education

platform for young people.

Other appointments: Helen is currently a non-

executive director of Schroder UK Mid Cap

Fund PLC and a non-executive director and

Chair of Orwell Housing Association.

Angus Pottinger

Non-Executive Director

Appointed on 24 November 2022.

Experience and contribution: He has worked

in financial services for over 35 years,

including most recently 22 years in Invesco’s

investment trust team, where he was Head

of Investment Company Services, specifically

in charge of accounting, company secretarial

and administration functions. Prior to that he

was a corporate broker at Merrill Lynch.

Other appointments: Angus is currently a

trustee of the Invesco UK pension scheme.

All Directors are members of the Audit Committee, the Engagement and Remuneration Committee and Nomination Committee.

No Director holds a directorship elsewhere in common with other members of the Board.

Board of Directors

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32 | CT UK High Income Trust PLC

Statement Regarding Annual Report and Financial

Statements

The Directors consider that, following a detailed review and

advice from the Audit Committee, the Annual Report and

Financial Statements for the year to 31 March 2023, taken

as a whole, is fair, balanced and understandable and provides

the information necessary for shareholders to assess the

Company’s position and performance, business model and

strategy. The Audit Committee reviewed the draft Annual Report

and Financial Statements for the purpose of this assessment

and, in reaching this conclusion, the Directors have assumed

that the reader of the Annual Report and Financial Statements

would have a reasonable level of knowledge of the investment

industry in general and investment companies in particular.

The outlook for the Company can be found on pages 6, 7 and

13. Principal risks and uncertainties can be found on pages 25

to 27 with further information in note 21 to the financial

statements. There are no instances where the Company is

required to make disclosures in respect of Listing Rule 9.8.4R.

Results and Dividends

The results for the year are set out in the financial statements

on pages 60 to 78. The return to shareholders was £(583,000).

The Company has paid quarterly interim dividends in the year

ended 31 March 2023 as follows:

Interim Dividend Payments

Payment date

Rate per

Ordinary share

Fourth interim for 2022 6 May 2022 1.55p

First interim for 2023 5 August 2022 1.32p

Second interim for 2023 4 November 2022 1.32p

Third interim for 2023 3 February 2023 1.32p

Dividend payments in the prior year ended 31 March 2022 are

set out in note 9 to the financial statements.

A fourth interim dividend of 1.55p per Ordinary share was paid

on 5 May 2023 to Ordinary shareholders on the register at

close of business on 11 April 2023. This dividend, together

with the first three interim dividends of 1.32p per Ordinary

share paid during the year, make a total dividend (for the

financial year to 31 March 2023) of 5.51p per Ordinary share.

This represents an increase of 1.1% over the 5.45p per

Ordinary share paid in respect of the previous financial year.

At the same time as dividend payments are made to Ordinary

shareholders, capital repayments of the same amount are

made to B shareholders from the special capital reserve.

As set out in the Company’s dividend/capital repayment policy

on page 29, payments are made quarterly and the Company

does not currently pay a final dividend that would require formal

shareholder approval at the AGM. This enables the fourth

interim dividend/capital repayment to be made in May and

earlier than would be possible if classed as a final dividend/

capital repayment and subject to shareholder approval at the

AGM in July.

As an alternative, the Board proposes to seek formal

shareholder approval at the AGM, and in future years, to

continue quarterly payments (Resolution 9).

Principal Activity and Status

The Company is registered in Scotland as a public limited

company in terms of the Companies Act 2006 (number:

SC314671) and is an investment company under section 833

of the Companies Act 2006.

The Company carries on business as an investment trust

and has been approved as such by HM Revenue & Customs

(‘HMRC’), subject to it continuing to meet the relevant eligibility

conditions and ongoing requirements. As a result, it is not

liable to corporation tax on capital gains. The Company

intends to conduct its affairs so as to enable it to comply with

the requirements.

The Directors submit the Annual Report and Financial Statements of the Company for the year

to 31 March 2023. The Directors’ biographies, Corporate Governance Statement, the Report of

the Nomination Committee, the Report of the Engagement and Remuneration Committee, the

Report of the Audit Committee and the Directors’ Remuneration Report form part of this Report of

the Directors.

Report of the Directors

Governance

Report and Accounts 2023 | 33

The Company is required to comply with company law, the

rules of the Financial Conduct Authority, and other legislation

and regulations including UK-adopted International Accounting

Standards and its own Articles of Association.

The Company is a member of the Association of Investment

Companies (the ‘AIC’).

Subsidiary Company

The Company has a 100% interest in Investors Securities

Company Limited (number: SC140578), a company which

deals in investments. In the year to 31 March 2023, Investors

Securities Company Limited made a profit before taxation of £nil

(2022: £nil).

Investors Securities Company Limited did not trade during the

year to 31 March 2023 and it has not been consolidated in

the financial statements in accordance with section 405 of the

Companies Act 2006 on grounds of materiality.

Accounting and Going Concern

Shareholders will be asked to approve the adoption of

the Annual Report and Financial Statements at the AGM

(Resolution 1).

The financial statements start on page 60 and the unqualified

Independent Auditor’s Report on the financial statements is

on pages 52 to 59. The significant accounting policies of the

Company are set out in note 1 to the financial statements.

In assessing the going concern basis of accounting, the

Directors have had regard to the guidance issued by the

Financial Reporting Council and have undertaken a rigorous

review of the Company’s ability to continue as a going concern.

As an investment company, investing primarily in listed

securities, most of the Company’s principal risks and

uncertainties are market-related. An explanation of these risks

and how they are managed is set out on pages 25 to 27. The

Board has, in particular, considered the impact of increased

market volatility since the COVID-19 pandemic and more

recently, due to macroeconomic and geopolitical concerns, but

does not believe the Company’s ability to continue as a going

concern is affected.

The Company’s investment objective and investment policy,

which is described on pages 8 and 29 and which is subject to

regular Board monitoring processes, is designed to ensure that

the Company is invested mainly in liquid, listed securities. The

value of these investments exceeds the Company’s liabilities

by a significant margin. The Company retains title to all assets

held by its custodian, and has an agreement relating to its

borrowing facility with which it has complied during the year.

Cash is only held with banks approved and regularly reviewed

by the Manager.

As part of the going concern review, the Directors noted that

a borrowing facility of a £15 million revolving credit facility is

committed to the Company until 28 September 2025 and loan

covenants are reviewed by the Board on a regular basis. Further

details are set out in note 16 to the financial statements.

Note 21 to the financial statements sets out the financial risk

profile of the Company and indicates the effect on the assets

and liabilities of falls (and rises) in the value of securities and

market rates of interest.

The Directors believe, having assessed the principal risks and

other matters, in light of the controls and review processes

noted above and bearing in mind the nature of the Company’s

business and assets and revenue and expenditure projections,

that the Company has adequate resources to continue in

operational existence for a period of at least twelve months

from the date of approval of the financial statements. For these

reasons, they continue to adopt the going concern basis in

preparing the financial statements.

The Company’s longer term viability is considered in the

‘Viability assessment and statement’ on page 28.

The Company does not have a fixed life. However, in the

event that the net asset value total return performance of the

Company is less than that of the FTSE All-Share Index over the

relevant three year period, in accordance with the Company’s

articles of association, shareholders will be given the

opportunity to vote on whether the Company should continue

in existence, by ordinary resolution at the Company’s Annual

General Meeting.

At the AGM held on 20 July 2022, an ordinary resolution

that the Company should continue in existence, was passed.

Also, a special resolution that new articles of association be

approved and adopted was passed, which included reducing

the performance measurement period from five years to three

years, as referenced above.

Statement of Disclosure of Information to the Auditor

Each of the Directors confirm that, so far as he or she is

aware, there is no information relevant to the preparation

of the Annual Report and Financial Statements of which the

Company’s auditor is unaware, and each Director has taken all

the steps that he or she ought to have taken as a Director in

order to make himself or herself aware of any relevant audit

information and to establish that the Company’s auditor is

aware of that information.

Governance

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34 | CT UK High Income Trust PLC

Governance

Re-appointment of Auditor

Deloitte LLP was re-appointed as the Company’s auditor at the

Annual General Meeting on 20 July 2022 and it has expressed

its willingness to continue in office as the Company’s auditor.

A resolution proposing its re-appointment and authorising the

Directors to determine its remuneration will be submitted at

the Annual General Meeting (Resolution 8).

Further information in relation to the re-appointment can be

found on page 47.

Capital Structure and Voting Rights

The Company’s capital structure is explained in the ‘Capital

Structure’ section on page 84 of this Annual Report and details

of the share capital, including voting rights, are set out in note

17 to the financial statements. Details of voting rights are also

set out in the Notes to the Notice of Annual General Meeting.

At 31 March 2023 there were 102,067,144 Ordinary shares

of 0.1p each listed, of which 16,994,491 were held in treasury

and 32,076,703 B shares of 0.1p each listed, of which

1,367,953 were held in treasury. At 31 March 2023, the total

listed share capital of the Company was represented 76.1 per

cent by Ordinary shares and 23.9 per cent by B shares.

There are: no significant restrictions concerning the transfer

of securities in the Company (other than certain restrictions

imposed by laws and regulations such as insider trading laws);

no agreements known to the Company concerning restrictions

on the transfer of securities in the Company or on voting

rights; and no special rights with regard to control attached to

securities. Pursuant to the Company’s loan facility agreement,

repayment may be required in the event of a change in control

of the Company. There are no significant agreements which the

Company is a party to that might be affected by a change of

control of the Company following a takeover bid.

Substantial Interests in Share Capital

At 31 March 2023 the Company had received notification of the

following holdings of voting rights (under the FCA’s Disclosure

Guidance and Transparency Rules):

Ordinary Shares

Number

held

Percentage

held*

1607 Capital Partners, LLC 8,500,000 10.0

D. C. Thomson & Company Limited 7,944,896 9.3

Thomson Leng Provident Fund 3,800,000 4.5

* Based on 85,072,653 Ordinary Shares in issue as at 31 March 2023.

B Shares

Number

held

Percentage

held*

D. C. Thomson & Company Limited 2,241,623 7.3

* Based on 30,708,750 B Shares in issue as at 31 March 2023.

Since 31 March 2023 the Company received the following

notification of voting rights: 1607 Capital Partners, LLC

3,655,300 Ordinary shares (4.3%).

The Company has not received any other notification of any

changes in these voting rights and no new holdings have been

notified since 31 March 2023 up to the date of this report.

Manager’s Savings Plans

Approximately 43% of the Company’s total share capital is held

through the Manager’s savings plans. The Manager does not

have discretion to exercise any voting rights in respect of the

shares held through the savings plans. Instead the nominee

company holding these shares votes in line with any voting

directions received from the underlying planholders. Where

no instruction is received from any underlying planholder, the

voting rights attached to their shares will not be exercised.

Borrowings

During the year, the Company refinanced its borrowing

facilities which matured on 28 September 2022. It now has a

£15 million unsecured revolving credit facility with The Royal

Bank of Scotland International Limited, of which £12 million

was drawn down at the year-end. Further information is

included in note 16 to the financial statements.

Directors’ Remuneration Report

At the AGM held on 27 July 2020, shareholders approved

the Directors’ Remuneration Policy. It is a requirement that

shareholder approval is sought at least every three years and

therefore shareholders will be asked to approve the Directors’

Remuneration Policy at the forthcoming AGM (Resolution 2).

There have been no material changes to the policy since

approved by shareholders at the AGM held on 27 July 2020.

The Directors’ Remuneration Report, which can be found

on pages 48 to 50, provides detailed information on the

remuneration arrangements for the Directors of the Company

and includes the Directors’ Remuneration Policy. Shareholders

will be asked to approve the Annual Report on Directors’

Remuneration (Resolution 3) at the AGM on 20 July 2023.

Remuneration is set at a level commensurate with the skills

and experience necessary for the effective stewardship of

the Company and the expected contribution of the Board as a

whole. It is intended that this policy will continue for the three

year period ending at the AGM in 2026.

Director Election and Re-Elections

Biographical details of the Directors, all of whom are non-

executive, can be found on page 31 and are incorporated into

this report by reference.

With the exception of John Evans, who retired following

the AGM on 20 July 2022 and Angus Pottinger, who was

appointed on 24 November 2022, all of the Directors held

Report and Accounts 2023 | 35

Governance

office throughout the year under review. In accordance with

the Company’s Articles of Association, any Director appointed

by the Board shall hold office only until the next Annual

General Meeting and shall then be eligible for election.

Accordingly, Angus Pottinger will retire at the AGM, being the

first such meeting following his appointment and, being eligible,

offers himself for election (Resolution 6).

As explained in more detail under the Corporate Governance

Statement on pages 39 to 41, the Board has agreed that

all Directors will retire annually. Accordingly, Helen Galbraith,

Stephen Mitchell and Andrew Watkins will retire at the AGM and,

being eligible, offer themselves for re-election (Resolutions 4,

5 and 7).

The skills and experience each Director brings to the Board

for the long-term sustainable success of the Company are set

out below.

• Resolution 4 relates to the re-election of Helen Galbraith

who was appointed on 6 May 2020 and has over 20 years‘

experience in the Insurance and Asset Management

industry. She also has relevant accounting experience and

is a Chartered Financial Analyst.

• Resolution 5 relates to the re-election of Stephen Mitchell

who was appointed on 6 May 2020 and has worked in

investments for over 40 years most recently as a global

equity specialist.

• Resolution 6 relates to the election of Angus Pottinger who

was appointed on 24 November 2022 and has worked

in financial services for over 35 years, including most

recently 22 years in Invesco’s investment trust team,

where he was Head of Investment Company Services,

specifically in charge of accounting, company secretarial and

administration functions.

• Resolution 7 relates to the re-election of Andrew Watkins

who was appointed on 29 June 2017 and has extensive

experience and knowledge of investment trusts and the

sector having been Head of Client Relations for Investment

Trusts at Invesco until his retirement in 2017.

The Directors believe that the Board has an appropriate balance

of skills, experience, independence and knowledge of the

Company to enable it to provide effective strategic leadership

and proper governance of the Company. The Chairman and the

Board confirms that, following formal performance evaluations,

the performance of each of the Directors continues to be

effective and demonstrates commitment to the role and, having

considered the Directors’ other time commitments and Board

positions are satisfied that each Director has the capacity to

be fully engaged with the Company’s business. In addition, the

Board believes that each Director is independent in character

and judgement, that they perform their duties at all times in

an independent manner and that there are no relationships or

circumstances which are likely to affect the judgement of any

Director. The Board believes that continuity and experience

add significantly to the strength of the Board. Additional

information on diversity and tenure is set out on pages 30

and 42. The Chairman and the Board therefore believes that it

is in the interests of shareholders that each of those Directors

seeking election and re-election are elected/re-elected.

There are no service contracts in existence between the

Company and any Directors but each of the Directors has been

issued with, and accepted, the terms of a letter of appointment

that sets out the main terms of his or her appointment.

Amongst other things, the letter includes confirmation that the

Director has a sufficient understanding of the Company and

the sector in which it operates, and sufficient time available

to discharge their duties effectively taking into account their

other commitments. These letters are available for inspection

upon request at the Company’s registered office during normal

business hours and will be available for inspection at the

Annual General Meeting.

Directors’ Interests and Letters of Indemnity

There were no contracts of significance to which the Company

was a party and in which a Director is, or was, materially

interested during the year.

The Company has entered into letters of indemnity in favour of

each of the Directors and these were in force throughout the

year ended 31 March 2023 and, in the case of Angus Pottinger,

from his appointment on 24 November 2022. The letters give

each Director the benefit of an indemnity to the extent permitted

by the Companies Act 2006 against liabilities incurred by each

of them in the execution of their duties and the exercise of their

powers. During the year, the Company refreshed its letters of

indemnity with each of the Directors to account for legislative

updates and changes in market practice. A copy of each letter of

indemnity is available for inspection at the Company’s registered

office during normal business hours and will be available for

inspection at the Annual General Meeting. The Company also

maintains Directors’ and Officers’ liability insurance.

Conflicts of Interest

Under the Companies Act 2006 a Director must avoid a

situation where he or she has, or could have, a direct or

indirect interest that conflicts, or possibly may conflict, with the

Company’s interests. The requirement is very broad and could

apply, for example, if a Director becomes a Director of another

company or a trustee of another organisation. The Companies

Act 2006 allows Directors of public companies to authorise

conflicts and potential conflicts, where appropriate, where the

Articles of Association contain a provision to this effect. The

Company’s Articles of Association give the Directors authority

to approve such situations.

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36 | CT UK High Income Trust PLC

Governance

The Board therefore has procedures in place for the authorisation

and review of potential conflicts relating to the Directors.

The Company maintains a register of Directors’ conflicts

of interest which have been disclosed and approved by the

other Directors. Other than authorisation of Directors’ other

directorships, no authorisations have been sought. This

disclose to the Company Secretary any changes to conflicts or

any potential new conflicts.

Safe Custody of Assets

The Company’s investments are held in safe custody by

JPMorgan Chase Bank (the ‘Custodian’). Operational matters

with the Custodian are carried out on the Company’s behalf

by the Manager in accordance with the provisions of the

investment management agreement. The Custodian is paid a

variable fee dependent on the number of trades and the value

and location of the securities held.

Depositary

JPMorgan Europe Limited (the ‘Depositary’) acts as the

Company’s depositary in accordance with the Alternative

Investment Fund Managers Directive (‘AIFMD’). The

Depositary’s responsibilities, which are set out in an Investor

Disclosure Document on the Company’s website, include,

but are not limited to, cash monitoring, ensuring the proper

segregation and safe keeping of the Company’s financial

instruments that are held by the custodian and monitoring

the Company’s compliance with investment and leverage limit

requirements. The Depositary receives for its services a fee of

0.01% per annum on the value of the Company’s net assets,

payable monthly in arrears.

Although the Depositary has delegated the safekeeping of all

assets held within the Company’s investment portfolio to the

Custodian, in the event of loss of those assets that constitute

financial instruments under the AIFMD, the Depositary will

be obliged to return to the Company financial instruments

of an identical type, or the corresponding amount of money,

unless it can demonstrate that the loss has arisen as a

result of an external event beyond its reasonable control, the

consequences of which would have been unavoidable despite

all reasonable efforts to the contrary.

Management and Management Fees

The Manager provides management, administration, marketing,

accounting and company secretarial services to the Company.

A summary of the investment management agreement between

the Company and the Manager in respect of the services

provided is given in note 4 to the financial statements. The

Manager is the Company’s AIFM, for which it does not receive

any additional remuneration.

Since the end of the year, the Engagement and Remuneration

Committee has reviewed the appropriateness of the Manager’s

appointment. In carrying out its review the Committee

considered the past investment performance of the Company

and the ability of the Manager to produce satisfactory

investment performance in the future. It also considered the

length of the notice period of the investment management

agreement and the fees payable to the Manager, together

with the standard of other services provided, which include

administration, marketing, accounting and company secretarial

services. Following this review, which included a comparison

against the terms of appointment of investment managers

for similar investment companies, it is the Directors’ opinion

that the continuing appointment of the Manager on the terms

agreed is in the best interests of shareholders as a whole.

Other Companies Act 2006 Disclosures

• The rules for appointment and replacement of Directors are

contained in the Articles of Association of the Company.

In respect of retiral by rotation, the Articles of Association

provide that each Director is required to retire at the third

Annual General Meeting after the Annual General Meeting

at which last elected. As mentioned earlier in this Report,

the Board has agreed that all Directors will retire annually.

• Amendment of the Articles of Association and powers to

issue and buy back shares require shareholder authority.

• There are no agreements between the Company and the

Directors providing for compensation for loss of office that

occurs because of a takeover bid.

Future Developments of the Company

The future success of the Company in pursuit of its investment

objective is dependent primarily on the performance of its

investments and the outlook for the Company is set out in the

Chairman’s Statement on pages 6 and 7 and the Manager’s

Review on page 13.

Environmental, Social and Governance

Details of the Company’s Environmental, Social and Governance

policies including voting on portfolio investments is set out on

pages 19 to 22.

The Company seeks to conduct its affairs responsibly and

environmental factors are, where appropriate, taken into

consideration with regard to investment decisions taken on

behalf of the Company.

Report and Accounts 2023 | 37

Governance

Greenhouse Gas Emissions & Taskforce for Climate

Related Financial Disclosures (‘TCFD’)

All of the Company’s activities are outsourced to third parties, it

has no employees and all of its Directors are non-executive. As

such it does not have any physical assets, property, employees

or operations of its own and does not generate any greenhouse

gas or other emissions.

Under Listing rule 15.4.29(R), the Company, as a listed closed-

end investment company, is exempt from complying with the

TCFD, however the Company has disclosed its assessment of

the weighted-average carbon intensity of its investments on

page 22.

Modern Slavery Act 2015

As an investment company with no employees or customers and

which does not provide goods or services in the normal course of

business, the Company considers that it does not fall within the

scope of the Modern Slavery Act 2015 and it is not, therefore,

obliged to make a human trafficking statement. The Company’s

own supply chain which consists predominantly of professional

advisers and service providers in the financial services industry,

which is highly regulated, is considered to be low risk in relation to

this matter. A statement by the Manager under the Act has been

published on its website columbiathreadneedle.co.uk

Financial Instruments

The Company’s financial instruments comprise its investment

portfolio, cash balances, bank borrowings and debtors and

creditors that arise directly from its operations such as sales

and purchases awaiting settlement and accrued income. The

financial risk management objectives and policies arising from

its financial instruments and the exposure of the Company to

risk are disclosed in note 21 to the financial statements.

Annual General Meeting

The Company is required by law to hold an Annual General

Meeting (‘AGM’) and it will be held at Exchange House,

Primrose Street, London, EC2A 2NY on 20 July 2023 at

12 noon. The Notice of Annual General Meeting is set out

on pages 80 to 83. Philip Webster, the Portfolio Manager

will give a presentation at the AGM and there will also be an

opportunity to ask questions. If you are unable to attend the

AGM, you may submit any questions you may have with regard

to the resolutions proposed at the AGM or the performance

of the Company, in advance of the meeting to the following

email address: UKHITCoSec@columbiathreadneedle.com. The

Portfolio Manager’s presentation will be available to view on the

Company’s website, ctukhighincome.co.uk, following the meeting.

The AGM is scheduled to be held in person and voting on all

resolutions will be conducted by way of a poll. Shareholders

are encouraged to exercise their votes either through the

Registrar’s online portal or by completing and returning their

Form of Proxy or Form of Direction. The results of the poll will

be announced via a regulatory announcement and posted

on the Company’s website at ctukhighincome.co.uk after

the meeting. Any changes to the AGM arrangements will be

announced via a regulatory announcement and will be included

on the Company’s website.

Resolutions 10 to 13 are explained below.

Directors’ Authority to Allot Shares (Resolutions 10

and 11)

The Directors are seeking authority to allot Ordinary shares

and B shares.

Resolution 10 (authority to allot shares) will, if passed,

authorise the Directors to allot new Ordinary shares up to an

aggregate nominal amount of £4,253 consisting of 4,253,000

Ordinary shares and new B shares up to an aggregate nominal

amount of £1,535 consisting of 1,535,000 B shares, being

approximately 5 per cent of the total issued Ordinary shares

and B shares respectively (excluding treasury shares) as at

31 May 2023. This authority therefore authorises the Directors

to allot up to 5,788,000 shares in aggregate representing

approximately 5 per cent of the total share capital in issue

(excluding treasury shares).

Resolution 11 (power to disapply pre-emption rights) will, if

passed, authorise the Directors to allot new Ordinary shares up

to an aggregate nominal amount of £4,253 and new B shares

up to an aggregate nominal amount of £1,535, being 4.2 per

cent and 4.8 per cent of the total issued Ordinary shares and

B shares respectively (including treasury shares) as at 31 May

2023, for cash without first offering such shares to existing

shareholders pro rata to their existing holdings. This authority

therefore authorises the Directors to allot up to 5,788,000

shares in aggregate for cash on a non pre-emptive basis

representing 4.3 per cent of the total share capital in issue

(including treasury shares). These authorities will continue until

the earlier of 30 September 2024 and the conclusion of the

Company’s next Annual General Meeting.

The Directors have no current intention to exercise these

authorities and will only allot new shares pursuant to these

authorities if they believe it is advantageous to the Company’s

shareholders to do so and will not result in a dilution of

net asset value per share. The Directors consider that the

authorisations proposed in Resolutions 10 and 11 are

necessary to retain flexibility, although they do not intend to

exercise the powers conferred by these authorisations at the

present time.

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38 | CT UK High Income Trust PLC

Governance

Directors’ Authority to Buy Back Shares (Resolution 12)

At the Annual General Meeting held on 20 July 2022

shareholders gave the Company authority to make market

puchases of up to 14.99% of each of the issued Ordinary

shares and issued B shares (in each case, excluding

shares held in treasury). During the year to 31 March 2023

the Company purchased through the market for treasury

100,000 Ordinary shares of 0.1p each, representing 0.1%

of the Ordinary shares in issue at the previous year end,

for a total consideration of £79,000 in accordance with the

Company’s discount management policy. During the year to

31 March 2023, the Company did not purchase through the

market any B shares of 0.1p each for treasury. Subsequent

to the year end, no Ordinary shares or B shares have been

purchased through the market between 31 March 2023 and

31 May 2023.

The current authority of the Company to make market

purchases of up to 14.99% of each of the issued Ordinary

shares and issued B shares (in each case, excluding shares

held in treasury) expires at the end of the Annual General

Meeting and Resolution 12, as set out in the notice of the

Annual General Meeting, seeks renewal of that authority. The

renewed authority to make market purchases will be in respect

of a maximum of 14.99% of each of the issued Ordinary shares

and issued B shares (in each case, excluding treasury shares)

of the Company on the date of the passing of the resolution.

The price paid for shares will not be less than the nominal

value of 0.1p per share nor more than the higher of (a) 5 per

cent above the average of the middle market values (as derived

from the Daily Official List of the London Stock Exchange) of

those shares for the five business days before the shares are

purchased and (b) the higher of the last independent trade

and the highest current independent bid on the London Stock

Exchange. This power will only be exercised if, in the opinion of

the Directors, a purchase will result in an increase in net asset

value per share and is in the interests of the shareholders.

Any shares purchased under this authority will be purchased

with cash and will either be held in treasury or cancelled. This

authority will expire on the earlier of 30 September 2024

and the conclusion of the next Annual General Meeting of

the Company.

There is no limit on the number of shares that a company can

hold in treasury at any one time and the Board has not set a

limit on the number of shares that can be held in treasury by

the Company.

There were 115,781,403 Ordinary shares and B shares in

issue (excluding treasury shares) as at 31 May 2023; of

which 85,072,653 (73.5 per cent) are Ordinary shares and

30,708,750 (26.5 per cent) are B shares. At that date, the

Company held 16,994,491 Ordinary shares (16.7 per cent of

the total Ordinary share capital) in treasury and 1,367,953 B

shares (4.3 per cent of the total B share capital) in treasury.

The Company therefore in aggregate holds 18,362,444 shares

in treasury representing 15.9 per cent of the total share capital

in issue (excluding treasury shares).

Treasury Shares (Resolution 13)

The Board continues to believe that the effective use of

treasury shares assists the liquidity in the Company’s

securities and management of the discount by addressing

imbalances between demand and supply for the

Company’s securities.

Resolution 13, if passed, will enable the Company to sell shares

from treasury without having first to make a pro rata offer to

existing shareholders. This authority will be limited to shares

representing approximately 8.3 per cent and 9.6 per cent of the

Company’s issued Ordinary share capital and B share capital

respectively (including treasury shares) as at the date of passing

of the resolution. The sale of shares from treasury is to be at a

price not less than the net asset value per share of the Ordinary

shares (in the case of a sale of Ordinary shares) or B shares (in

the case of a sale of B shares).

Recommendation

The Board considers that the passing of the resolutions to

be proposed at the Annual General Meeting is in the best

interests of the Company and its shareholders as a whole

and it unanimously recommends that all shareholders vote

in favour of those resolutions. The Directors intend to vote

in favour of each of the resolutions in respect of their own

beneficial holdings of 55,732 Ordinary shares, representing

approximately 0.05% of the issued share capital of the

Company as at the date of this document. Information on

shareholder voting rights is set out in the Notes to the Annual

General Meeting.

Individual Savings Accounts

The Company’s shares are qualifying investments for Individual

Savings Accounts. It is the current intention of the Directors

that the Company will continue to conduct its affairs to satisfy

this requirement.

By order of the Board

For Columbia Threadneedle Investment Business Limited

Company Secretary

Quartermile 4

7a Nightingale Way

Edinburgh EH3 9EG

31 May 2023

Report and Accounts 2023 | 39

Governance

The biographical details of the Directors responsible for

the governance of your Company are set out on page 31.

Committee membership is also included and the respective

terms of reference and biographies are also available on the

Company’s website ctukhighincome.co.uk

In maintaining the confidence and trust of the Company’s

shareholders, the Board sets out to adhere to the highest

standards of corporate governance, business and ethics

transparency and it remains committed to doing so. As the

Board believes that good governance creates value, it expects

the companies in which it invests to apply similar standards.

Governance Overview

Throughout the financial year, an Audit Committee, Engagement

and Remuneration Committee and Nomination Committee were

in place. The role and responsibilities of these committees are

set out in their respective reports, which follow, and their terms

of reference are also available on the Company’s website. Since

the retirement of John Evans on 20 July 2022 (who was not

a member of the Audit Committee), each of the committees

comprises all of the Directors. The Board considers that, given

its size, it would be unnecessarily burdensome to establish

separate committees which did not include the entire Board and

believes that this enables all Directors to be kept fully informed

of any issues that arise.

As set out in the Strategic Report, the Board has appointed the

Manager to manage the investment portfolio as well as to carry

out the day to day management and administrative functions.

Reporting from the Manager is set out on pages 11 to 15 and

in the Report of the Audit Committee in respect of internal

controls on pages 44 to 47. The Board’s evaluation of the

Manager and its alignment with the values of the Board can be

found on pages 8 and 9.

The Board has direct access to company secretarial advice and

services of the Manager which, through the Company Secretary,

is responsible for ensuring that Board and committee

procedures are followed and applicable laws, regulations and

best practice requirements are complied with. The proceedings

at all Board and committee meetings are fully recorded through

a process that allows any Director’s concerns to be recorded by

the Company Secretary in the minutes.

Compliance with the AIC Code of Corporate Governance

(the ‘AIC Code’)

The Board has considered and support the principles and

recommendations of the AIC Code published in February 2019.

The AIC code addresses the principles and provisions set out

in the UK Corporate Governance Code (the “UK Code”) as

well as setting out additional provisions on issues that are of

specific relevance to investment companies. There are also two

main differences. In the AIC Code, both the nine year limit on

chair tenure and the restriction on the chair of the Board being

a member of the Audit Committee have been removed.

John Evans was appointed to the Board on 8 May 2013 and

then as Chairman on 9 July 2019. Therefore, having served

on the Board for more than nine years, he retired following the

conclusion of the AGM on 20 July 2022. Following John Evans’

retirement, Andrew Watkins was then appointed Chairman.

Andrew Watkins was appointed to the Board on 29 June 2017

and has therefore served for less than nine years. The tenure

policy relating to the Directors, which includes the Chairman, is

set out on page 30.

None of the Directors standing for re-election at the

forthcoming AGM has served in excess of nine years.

The Board considers that reporting against the principles and

provisions of the AIC Code, which has been endorsed by the

Financial Reporting Council, provides more relevant information

to shareholders. By reporting against the AIC Code, the

Company meets its obligations in relation to the UK Code (and

associated disclosure requirements under paragraph 9.8.6 of

the Listing Rules) and as such does not need to report further

on issues contained in the UK Code which are not relevant to

it as an externally managed investment company.

The Board believes that the Company has complied with the

recommendations of the AIC Code during the year under review

and up to the date of this report and, except as regards the

provisions of the UK Code set out below, has thereby complied

with the relevant provisions of the UK Code:

• the role of the Chief Executive;

• executive directors’ remuneration;

• the need for an internal audit function;

• membership of the Audit Committee by the Chairman of the

Board; and

• workforce engagement.

Corporate Governance Statement

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40 | CT UK High Income Trust PLC

Governance

For the reasons set out in the AIC Code, the Board considers

these provisions as not being relevant to the position of the

Company, being an externally managed investment company.

In particular, all of the Company’s daily management and

administrative functions have been delegated to the Manager.

As a result, the Company has no executive Directors, employees

or internal operations. As explained in the Report of the Audit

Committee, Andrew Watkins, the current Chairman of the Board

is also a member of the Audit Committee, as permitted by

the AIC Code. Therefore, with the exception of the need for an

internal audit function, which is addressed on page 46, we have

not reported further in respect of these provisions.

The AIC code can be found on theaic.co.uk and the UK code

on frc.org.uk.

Company Purpose

The Company’s purpose, values and culture and the basis on

which it aims to generate value over the longer term is set out

within the Purpose, Strategy and Business Model on pages 8

to 9. How the Board seeks to promote the success of the

Company is set out on pages 23 and 24.

Board Leadership

The Board consists solely of non-executive Directors and

following John Evans’ retirement on 20 July 2022, Andrew

Watkins was appointed as Chairman. The Board is responsible

for the effective stewardship of the Company’s affairs and

has in place a schedule of matters that it has reserved for its

decision, which is reviewed periodically.

The Board currently meets at least five times a year and at

each meeting the Board reviews the Company’s investment

performance and considers financial analyses and other reports

of an operational nature. The Board monitors compliance

with the Company’s objectives and is responsible for setting

investment and gearing limits within which the Manager has

discretion to act, and thus supervises the management of the

investment portfolio which is contractually delegated to the

Manager.

An investment management agreement between the Company

and its Manager, Columbia Threadneedle Investment Business

Limited, sets out the matters over which the Manager has

authority and the limits beyond which Board approval must be

sought. All other matters, including strategy, investment and

dividend policies, gearing, and corporate governance procedures,

are reserved for the approval of the Board of Directors.

Division of Board Responsibilities

As an externally managed investment company, all the

Directors are non-executive and there are no employees.

Andrew Watkins, as Chairman, is responsible for the leadership

and management of the Board and promotes a culture of

openness, challenge and debate. The Chairman sets the

agenda for all Board meetings under a regular programme of

matters in conjunction with the Company Secretary. There is a

strong working relationship with the Manager and the Portfolio

Manager and related personnel attend the meetings throughout

the year and report to the Board. Discussions are held in a

constructive and supportive manner with appropriate challenge

and strategic guidance and advice from the Board whenever

necessary, consistent with the culture and values.

Until 20 July 2022 and his appointment as Chairman, Andrew

Watkins was the Senior Independent Director. From this date

Stephen Mitchell then became the Senior Independent Director.

He acts as an experienced sounding board for the Chairman

or as an intermediary for other Directors and shareholders. He

also leads the annual evaluation of the Chairman.

In order to enable them to discharge their responsibilities, all

Directors have full and timely access to relevant information.

Directors, may at the expense of the Company, seek

independent professional advice on any matter that concerns

them in the furtherance of their duties. No such advice was

taken during the year under review. The Company maintains

appropriate directors’ and officers’ liability insurance.

Under the Articles of Association of the Company, the number

of Directors on the Board may be no less than two and no

more than seven. Directors may be appointed by the Company

by ordinary resolution or by the Board. Any Director appointed

by the Board would hold office only until the next general

meeting and then be eligible for re-election by shareholders.

The Board has agreed that all Directors will retire annually and,

if appropriate, seek re-election.

Full details of the duties of Directors are provided at the time

of appointment. New Directors receive an induction from the

Manager on joining the Board, and all Directors are encouraged

to attend relevant training courses and seminars and receive

regular updates on the industry and changes to laws,

regulations and best practice requirements from the Company

Secretary and other parties, including the AIC. All of the

Directors consider that they have sufficient time to discharge

their duties.

All Directors are considered by the Board to be independent

of the Company’s Manager and the Board believes that each

Director is independent in character and judgement and that

they perform their duties at all times in an independent manner

and that there are no relationships or circumstances which are

likely to affect the judgement of any Director.

Report and Accounts 2023 | 41

Governance

Directors’ attendance during the year ended 31 March 2023

Board of

Directors

Audit

Committee

Engagement and

Remuneration

Committee

Nomination

Committee

No. of meetings 5 2 1 3

A K Watkins 5 2 1 3

J M Evans

(1)

2 n/a 1 1

H M Galbraith 5 2 1 3

S J Mitchell 5 2 1 3

A W Pottinger

(2)

2 1 – –

(1)

Retired on 20 July 2022

(2)

Appointed on 24 November 2022

During the year, additional meetings were also held to approve matters such as

the interim dividends and capital repayments and a new borrowing facility.

Composition and Succession

The composition of the Board and Committees together with

the experience of the members is set out on page 31. The

Company’s diversity and tenure policy is set out on page 30.

Having served on the Board for more than nine years, John

Evans retired following the conclusion of the AGM on 20 July

2022. During the year, the Nomination Committee undertook

a recruitment process to appoint a new non-executive

director and Angus Pottinger was appointed with effect from

24 November 2022. The process followed is set out in the

Report of the Nomination Committee on page 42. This formed

part of the Board’s succession plan which has enabled the

retirement of the longer serving Directors while balancing the

need to ensure an adequate level of continuity and experience

on the Board.

Board Evaluation and Effectiveness

During the year the performance of the Board and Committees,

including the performance of each individual Director, was

evaluated through a formal assessment process, led by Andrew

Watkins, the Chairman. The performance of the Chairman

was evaluated by the other Directors under the leadership

of Stephen Mitchell, the Senior Independent Director. This

process involved discussions with individual Directors,

individual feedback from the Chairman to each of the Directors

and discussion of the points arising amongst the Directors.

Following this process, it was concluded that the performance

of each Director and the Chairman continues to be effective

and each remain committed to the Company and that the Board

oversees the management of the Company effectively and has the

requisite skills and expertise to safeguard shareholders’ interests.

The conclusion from the assessment process was also that the

Audit Committee, Nomination Committee and Engagement and

Remuneration Committee were operating effectively, with the

right balance of membership, experience and skills.

Audit, Risk Management and Internal Control

The Board has a well established and effective Audit

Committee, the report of which is set out on pages 44 to

47. The report includes how the Board oversees the risk

management and internal control framework and determines

the nature and extent of the principal risks the Company

is willing to take in order to achieve its long-term strategic

objectives. Details of the principal risks and uncertainties

are set out on pages 25 to 27 and further information on the

Company’s risk management and internal control framework

can be found on pages 44 to 46.

The rationale for the Company not having established its own

internal audit function is also explained.

The report of the Audit Committee explains how the independence

and effectiveness of the external auditor is assessed and how the

Board satisfies itself on the integrity of financial statements. The

report also covers the process under which the Board satisfied

itself that the Annual Report and Financial Statements, taken as a

whole, presents a fair balanced and understandable assessment

of the Company’s position and prospects.

Relations with Shareholders and Stakeholders

Communication with the Company’s key stakeholders, who are

its shareholders, the Manager, bankers and other key service

providers is set out on page 9.

Remuneration

Information on the remuneration arrangements for the non-

executive Directors of the Company can be found in the

Directors’ Remuneration Report on pages 48 to 50 and in note

6 to the financial statements.

The remuneration policy is explained on page 48 and that, as non-

executive Directors, their fees are set at a level commensurate with

the skills and experience necessary for the effective stewardship

of the Company and the contribution towards the delivery of the

investment objective. While there are no executive Directors and no

employees, shareholders should expect that the fees paid to the

Manager are aligned with the Company’s purpose, values and the

successful delivery of its long-term strategy.

Share Capital and Companies Act 2006 Disclosures

Details of the Company’s capital structure is set out on

page 84 and details of substantial interests in the Company’s

share capital and other Companies Act 2006 Disclosures are

included on pages 34 and 36.

By order of the Board

For Columbia Threadneedle Investment Business Limited

Company Secretary

Quartermile 4

7a Nightingale Way

Edinburgh EH3 9EG

31 May 2023

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42 | CT UK High Income Trust PLC

Governance

Composition of the Committee

The Committee comprises the full Board and is chaired by

Andrew Watkins. Angus Pottinger joined the Committee with

effect from 24 November 2022, when he was appointed as a

non-executive director. The Committee’s terms of reference can

be found on the website at ctukhighincome.co.uk

Role of the Committee

The primary role of the Nomination Committee is to review

and make recommendations with regard to Board structure,

size and composition and it takes into account the ongoing

requirements of the Company and the need to have a balance

of skills, experience, diversity (including gender, race, ethnicity,

socio-economic background, religion, sexual orientation,

age or physical ability), independence and knowledge of the

Company within the Board and ensuring succession planning is

carefully managed.

The Committee met on three occasions during the year and

considered and reviewed the following matters:

• the size of the Board and its composition, particularly in

terms of succession planning and the experience and skills

of individual Directors and diversity of the Board as a whole;

• tenure;

• the criteria for future Board appointments and the methods

of recruitment, selection and appointment; and

• future retirement of Directors.

Diversity and Tenure

The Company’s Board diversity and tenure policy is shown

on page 30 and recruitment searches are open to a diverse

range of candidates. Other than the diversity targets set out in

the Listing Rules, the Directors have not set any measurable

objectives in relation to diversity of the Board and will always

appoint the best qualified person for the role.

The Board believes that a Director’s tenure does not

necessarily reduce his or her contribution or ability to act

independently and that continuity and experience can add

significantly to the strength of investment trust Boards where

the characteristics and relationships tend to differ from

those of other companies. However, the Board is committed

to maintaining the highest levels of corporate governance in

terms of independence and would expect that, Directors would

normally serve for not more than nine years, however this may

be adjusted for reasons of flexibility and continuity.

Appointments and Succession Planning

Appointments of all new non-executive Directors are made

on a formal basis, using professional search consultants as

appropriate, with the Nomination Committee agreeing the

selection criteria and the method of recruitment, selection

and appointment.

A succession plan, to allow for the retirement of the longer

serving Directors, has been in progress over the last few years.

The emphasis has been on ensuring the highest level of skills,

knowledge and experience of the Board and when recruiting

a new Director consideration is given to the current skills and

experience of the Board and the remaining tenure of each

Director. This assists in identifying the desired attributes of the

new Director and ensures that the Board continues to comprise

individuals with appropriate and complementary skills and

experience and continuity.

Having served on the Board since 8 May 2013, John Evans

retired as a non-executive Director and Chairman of the

Company, following the AGM held on 20 July 2022. Andrew

Watkins then became the Chairman of the Board and also of

the Nomination Committee.

As shareholders supported the resolution at the AGM, that

the Company should continue in existence, the Nomination

Committee then undertook a recruitment process, to appoint

a new non-executive Director. An external search agency,

Trust Associates (which has no connection to the Company

or the Directors), was engaged to assist with the process.

The Committee defined the criteria that was required and the

selection process took into consideration the applications

received and interviews with the short-listed candidates.

Following the recruitment process it was agreed to appoint

Angus Pottinger as a non-executive Director of the Company

with effect from 24 November 2022.

Committee Evaluation

The activities of the Committee were considered as part of

the Board appraisal process completed in accordance with

standard governance arrangements as summarised on page 41.

The conclusion from the process was that the Committee

was operating effectively, with the right balance of experience

and skills.

Andrew Watkins

Chairman of the Nomination Committee

31 May 2023

Report of the Nomination Committee

Report and Accounts 2023 | 43

Governance

Composition of the Committee

The Committee comprises the full Board and is chaired by

Stephen Mitchell. Angus Pottinger joined the Committee with

effect from 24 November 2022, when he was appointed as a

non-executive director. The Committee’s terms of reference can

be found on the website at ctukhighincome.co.uk

Role of the Committee

The Committee meets at least annually and its role is to review

the terms and conditions of the Manager’s appointment and

the services it and other key service providers provide and the

fees charged, and also to review the remuneration of Directors.

The Committee met on one occasion during the year.

Manager Evaluation Process and Re-appointment

Since the end of the year, the Committee has reviewed the

appropriateness of the Manager’s appointment. In carrying

out its review the Committee considered the past investment

performance of the Company and the skills, experience

and depth of the Manager’s team involved in managing the

Company’s assets and its ability to produce satisfactory

investment performance in the future.

Investment performance is also considered by the Board at

every meeting, with a formal evaluation by the Committee

each year. For the purposes of its ongoing monitoring, the

Board receives reports from the Manager on investment

activity, attribution, gearing, risk and performance. This

enables the Board to assess the sources of positive and

negative contribution to returns in terms of gearing and

stock selection. While shorter term data is important, the

assessment of the Manager’s performance is now considered

over a three year period, looking at comparisons against

the benchmark and a peer group of other UK Equity Income

investment companies. The period of three years matches the

period between shareholder continuation votes, in the event

that the NAV total return performance of the Company is less

than that of the FTSE All-Share Index over the relevant three

year period. This allows the Board to assess the management

of the investment portfolio against the Company’s investment

objective on an ongoing basis together with performance

against the Company’s key performance indicators. The most

recent performance period ended on 31 March 2022 and

as the NAV total return was less than the total return for the

FTSE All-Share Index over this period, a Resolution that the

Company continue in existence was proposed and passed by

shareholders at the AGM on 20 July 2022.

The annual evaluation that took place in May 2023 included

a presentation from the Portfolio Manager and the Manager’s

Head of Investment Trusts. This included reporting on the

investment performance and its ability to successfully deliver

the investment strategy for shareholders. The Manager also

reported on the strength of its current business, progress

on the integration of its business with that of Columbia

Threadneedle Investments, the resources and opportunities

that can be expected as part of the enlarged business and the

continued support of the investment trust business.

The Committee also considered the length of the notice period

of the investment management contract and fees payable

to the Manager, together with the standard of other services

provided which include ESG, marketing, company secretarial

and accounting services.

During the year, a change to the investment management fee

was agreed between the Board and the Manager and with

effect from 1 April 2022 the investment management fee was

reduced from 0.65% to 0.60% per annum on the net asset

value of the Company.

Following this review, it was the Committee’s view that the

continuing appointment of the Manager on the terms agreed

was in the best interests of shareholders as a whole. The

Board ratified this recommendation.

Review of Directors’ Fees

The Company Secretary, Columbia Threadneedle Investment

Business Limited, provides information on comparative levels of

Directors’ fees in advance of the Committee considering the level

of Directors’ fees. Following a review for the forthcoming year to

31 March 2024 the Committee concluded the amount paid to

Directors would increase, by £2,250 per annum for the Chairman,

by £2,000 per annum for the Audit Committee chairman and

by £1,500 per annum for each of the other Directors. It is

anticipated that these fees will then remain unchanged for the

subsequent financial year to 31 March 2025.

Committee Evaluation

The activities of the Committee were considered as part

of the Board appraisal process completed in accordance

with standard governance arrangements as summarised

on page 41. The conclusion from the process was that the

Committee was operating effectively, with the right balance

of experience and skills.

Stephen J Mitchell

Chairman of the Engagement and Remuneration Committee

31 May 2023

Report of the Engagement and

Remuneration Committee

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44 | CT UK High Income Trust PLC

Governance

Composition of the Committee

The Board recognises the requirement for the Audit Committee

as a whole to have competence relevant to the sector in which

the Company operates and at least one member with recent

and relevant experience.

The Audit Committee is chaired by Helen Galbraith who is

a Chartered Financial Analyst and has recent and relevant

financial experience. The Audit Committee operates within

clearly defined terms of reference and now comprises the full

Board. Until his retirement on 20 July 2022, John Evans who

was Chairman of the Board, was not a member of the Audit

Committee. Angus Pottinger joined the Audit Committee with

effect from 24 November 2022, when he was appointed as

a non-executive Director. These directors have a combination

of relevant financial, investment and business experience

and specifically with respect to the investment trust sector

and accordingly have sufficient experience to discharge their

responsibilities. Given the relevant experience of Andrew

Watkins, who became the Chairman of the Board (following

the retirement of John Evans), his continued independence

and valued contribution, the Audit Committee considers it

appropriate that he is a member. Details of the members can

be found on page 31 and the Committee’s terms of reference

are available on the Company’s website ctukhighincome.co.uk

The performance of the Committee was evaluated as part of

the Board appraisal process.

Role of the Committee

The duties of the Audit Committee include ensuring the

integrity of the financial reporting and financial statements

of the Company, reviewing the annual and interim financial

statements, the risk management and internal controls

processes, and the terms of appointment and remuneration of

the auditor, Deloitte LLP (‘Deloitte’), including its independence

and objectivity. It also provides a forum through which the

Auditor reports to the Board of Directors and meets at least

twice a year including at least two meetings with Deloitte.

The Audit Committee met on two occasions during the year

and the attendance of each of the members is set out on

page 41. In the due course of its duties, the Committee had

direct access to Deloitte and senior members of the Manager’s

Fund Management, Investment Trust and Operational

Risk Management teams. Amongst other things, the Audit

Committee considered and reviewed the following matters and

reported thereon to the Board:

• the annual and half-yearly results announcements, and

annual and half-yearly reports and financial statements;

• the accounting policies of the Company and the allocation

of management expenses and interest costs between

capital and revenue;

• the principal and emerging risks and uncertainties faced

by the Company and the effectiveness of the Company’s

internal control and risk management environment;

• consideration of the assumptions underlying the Board’s

statements on going concern and viability;

• the effectiveness of the external audit process and any

related non-audit services and the independence and

objectivity of Deloitte, it‘s re-appointment, remuneration and

terms of engagement;

• the policy on the engagement of Deloitte to supply non-

audit services and approval of any such services;

• the implications of proposed new accounting standards and

regulatory changes;

• the need for the Company to have its own internal audit

function;

• the ISAE/AAF and SSAE16 reports or their equivalent from

the Manager, the Custodian and other significant third party

service providers;

• whether the Annual Report and Financial Statements as a

whole is fair, balanced and understandable;

• the operational arrangements and performance of the

Manager and other third party service providers in terms of

business continuity; and

• the implications of the acquisition of BMO GAM (EMEA) (which

included the Company’s investment manager), by Columbia

Threadneedle Investments in terms of the integration of its

systems, risk management and internal control infrastructure

with Columbia Threadneedle Investments.

With regard to the change of ownership of BMO GAM (EMEA)

that took effect in November 2021, the Audit Committee has

received confirmation from the Manager that the existing

systems and controls are unchanged and have continued

to operate effectively throughout the year under review and

thereafter without any material change to the date of this

report. The integration of BMO GAM (EMEA) and Columbia

Threadneedle Investments is now well advanced, but the

Audit Committee continues to monitor it closely from a risk

management and internal control perspective.

During the preparation of both the half-yearly report for the six

month period ended 30 September 2022 and the Annual Report

and Financial Statements for the year ended 31 March 2023,

Report of the Audit Committee

Report and Accounts 2023 | 45

Governance

the Committee has considered the impact of the war in Ukraine

and macroeconomic and geopolitical concerns upon the risks,

operations and accounting basis of the Company. As noted

within Principal Risks and Uncertainties and Viability Statement

on pages 25 to 28 the Directors have reviewed the risk register

of the Company and agreed that the overall risk from some of

its principal risks remain heightened. Following the COVID-19

pandemic, most staff at the Manager have continued to operate a

“hybrid” working arrangement, sharing their working time between

their office and working remotely. The necessary arrangements

for remote working are now well established and the Committee

continues to monitor this and is confident that the Company

continues to operate as normal with service levels maintained.

The Board retains ultimate responsibility for all aspects relating

to external financial statements and other significant published

financial information as is noted in the Statement of Directors’

Responsibilities on page 51.

On broader control policy issues, the Committee has

considered and is satisfied with the Code of Conduct and the

Anti-Bribery and Anti-Corruption Operating Directive to which the

Manager’s employees are subject. The Board is responsible for

ensuring appropriate procedures and processes are in place to

enable issues of concern to be raised. The Committee has also

considered the Manager’s Whistleblowing Policy, under which

its directors and staff may, in confidence, raise concerns about

possible improprieties in financial reporting or other matters.

Risk Management

The Board has established an ongoing process designed

to meet the particular needs of the Company in managing

the risks to which it is exposed, consistent with the related

guidance issued by the Financial Reporting Council.

The Manager’s Operational Risk Management team provides

regular control reports to the Audit Committee and the Board

covering risk and compliance and any significant issues of

direct relevance to the Company are required to be reported to

the Audit Committee and Board without delay.

For the management of risk, a key risk summary is produced

to help identify the risks to which the Company is exposed,

the controls in place and the actions being taken to mitigate

them. The Audit Committee and Board has a robust process for

considering the resulting risk control assessment and reviews

the significance of the risks and reasons for any changes.

The Company’s principal risks and uncertainties and their

mitigations are set out on pages 25 to 27 with additional

information provided in note 21 to the financial statements.

The integration of these risks into the consideration of the

Viability Statement on page 28 was also fully considered and

the Audit Committee concluded that the Board’s Statement was

soundly based. The period of three years was also agreed as

being appropriate for the reasons given in the Statement.

Internal Controls

The Board has overall responsibility for the Company’s system

of risk management and internal control, for reviewing its

effectiveness and ensuring that risk management and internal

control processes are embedded in the daily operations, which

are managed by the Manager.

The Audit Committee has reviewed and reported to the Board

on these controls which aim to ensure that the assets of the

Company are safeguarded, proper accounting records are

maintained, and the financial information used within the

business and for publication is reliable.

Control of the risks identified, including financial, operational,

compliance and overall risk management, is exercised by

the Audit Committee and the Board through regular reports

provided by the Manager. The reports cover investment

performance, attribution, compliance with agreed and regulatory

investment restrictions, financial analyses, revenue estimates,

performance of the third party administrator of the Manager’s

savings plans and other relevant issues.

At each Board meeting, the Board monitors the investment

performance of the Company in comparison to its objective

and relevant equity market indices. The Board also reviews the

Company’s activities since the last Board meeting to ensure

that the Manager adheres to the agreed investment policy and

approved investments guidelines and, if appropriate, approves

changes to such policy and guidelines.

The system of risk management and internal control is designed

to manage, rather than eliminate risk and, by its nature, can only

provide reasonable, but not absolute, assurance against material

misstatement, loss, or fraud. Further to the review by the Audit

Committee, the Board has assessed the effectiveness of the

Company’s internal control systems.

The assessment included a review of the Manager’s risk

management infrastructure and the Report on Internal Controls

in accordance with ISAE 3402 and AAF 01/20 for the year

to 31 October 2022 (the ‘ISAE/AAF Report’) that has been

prepared for its investment trust clients. The Audit Committee

also received confirmation from the Manager that, subsequent

to this date, there had been no material changes to the control

environment. Containing a report and an unqualified opinion

from independent reporting accountants KPMG LLP, it sets out

the Manager’s control environment and procedures with respect

to the management of its clients’ investments and maintenance

of their financial records. The effectiveness of these controls is

monitored by the Manager’s Group Audit and Risk Committee,

which, for the year to 31 October 2022, received regular internal

audit reports from its Risk and Control Services function.

Procedures are also in place to capture and evaluate any failings

and weaknesses within the Manager’s control environment and

those extending to any outsourced service providers to ensure

that action would be taken to remedy any significant issues

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46 | CT UK High Income Trust PLC

Governance

identified and which would be reported to the Board. Any errors

or breaches relating to the Company are reported at each Audit

Committee and Board Meeting by the Manager. No failings or

weaknesses material to the overall control environment and

financial statements in respect of the Company were identified in

the year under review nor to the date of this report.

The Audit Committee also reviewed appropriate reports on the

internal controls of other significant service providers, such as

the Custodian and Registrar, and was satisfied that there were

no material exceptions.

The review procedures have been in place throughout the

financial year and up to the date of approval of the financial

statements, and the Board is satisfied with their effectiveness.

Through the reviews and reporting arrangements set out

above and by direct enquiry of the Manager and other relevant

parties, the Audit Commitee and the Board have satisfied

themselves that there were no material control failures or

exceptions affecting the Company‘s operations during the

financial year or to the date of this report.

The Audit Committee has reviewed the need for an internal

audit function. Based on review, observation and enquiry,

the Audit Committee and the Board have concluded that the

systems and procedures employed by the Manager provide

sufficient assurance that a sound system of internal control,

which safeguards shareholders’ investments and the Company’s

assets, is maintained. In addition, the Company’s financial

statements are audited by an external Auditor. An internal

audit function, specific to the Company, is therefore considered

unnecessary but this decision will be kept under review.

Significant Matters Considered by the Audit Committee in Relation to the Financial Statements

Matter Action

Investment Portfolio Valuation

Possibility of incorrect valuation of the investment

portfolio.

The Company’s accounting policy is stated in note 1 to the financial

statements. The Board reviews the full portfolio valuation at each Board

meeting and receives quarterly monitoring and control reports from the

Manager and Depositary. The Audit Committee reviewed the Manager’s

annual ISAE/AAF Report, as referred to on page 45, which is reported on by

independent external accountants and details the systems, processes and

controls around the daily pricing of equity securities. The Manager has provided

further assurance that controls have operated satisfactorily since that date.

Misappropriation of Assets

Misappropriation or non-existence of the

Company’s investments or cash balances could

have a material impact on its net asset value

per share.

The Audit Committee reviewed the Manager’s ISAE/AAF Report, as referred

to on page 45, which details the controls around the reconciliation of the

Manager’s records to those of the Custodian. The Audit Committee also

reviewed the Custodian’s semi-annual internal controls report, which is

reported on by independent external accountants, and which provides

details regarding its control environment. The Depositary has issued reports

confirming, amongst other matters, the safe custody of the Company’s assets

for the period to 31 March 2023.

Income Recognition

Incomplete or inaccurate income recognition,

including allocation between revenue and capital,

could have an adverse effect on the Company’s

net asset value and earnings per share and its

level of dividend cover.

The Audit Committee reviewed the Manager’s ISAE/AAF Report, as previously

referred to, which details the systems, processes and controls around the

recording of investment income. It also compared the final level of income

received for the year to the budget for the year and discussed the accounting

treatment of all special dividends received with the Manager.

Investment Trust Tax Status

As an investment trust company, the Company is

exempt from taxation arising on capital gains.

Breach of Section 1158 of the Corporation Tax

Act 2010 could lead to the Company being

subject to tax on capital gains.

The Audit Committee reviewed the Company’s ongoing compliance with the

investment trust conditions set out in Section 1158 of the Corporation Tax Act

2010. In particular, the Audit Committee ensured that the retained revenue

after tax for the year was less than 15 per cent of the Company’s total income.

The Audit Committee read and discussed this Annual Report and Financial Statements and concluded that it is fair, balanced and

understandable and provides the information necessary for shareholders to assess the Company’s performance objective and strategy.

Report and Accounts 2023 | 47

Governance

External Audit Process and Significant Matters

Considered by the Audit Committee

In carrying out its responsibilities, the Audit Committee has

considered the planning arrangements, scope, materiality levels

and conclusions of the year end 31 March 2023 external audit

of the financial statements. The table on page 46 describes

the significant matters considered by the Audit Committee in

relation to the financial statements for the year and how these

were addressed.

The Audit Committee met in May 2023 to discuss the draft

Annual Report and Financial Statements, with representatives

of Deloitte and the Manager in attendance and Deloitte

presented their year-end report to the Audit Committee.

At the conclusion of the audit, Deloitte did not report any

audit differences in excess of their reporting threshold of

£0.05 million, nor any differences below that level which would

warrant disclosure on qualitative grounds. In addition Deloitte

did not highlight any other issues to the Audit Committee which

would cause it to qualify its audit report nor did it highlight any

fundamental internal control weaknesses. Deloitte issued an

unqualified audit report which is included on pages 52 to 59.

Non-audit Services

The Committee regards the continued independence of the

Auditor to be a matter of the highest priority. The Company’s

policy with regard to the provision of non-audit services by the

external Auditor ensures that no engagement will be permitted if:

• the provision of the services would contravene any

regulation or ethical standard;

• the Auditor is not considered to be expert providers of the

non-audit services;

• the provision of such services by the Auditor creates a

conflict of interest for either the Board or the Manager; and

• the services are considered to be likely to inhibit the

Auditor’s independence or objectivity as Auditor.

In particular, the Committee has a policy that the accumulated

costs of all non-audit services sought from the Auditor in any

one year should not exceed 30% of the likely audit fees for

that year and not exceed 70% of the average audit fee for the

previous three years.

In relation to the provision of non-audit services by the Auditor

it has been agreed that all non-audit work to be carried out

by the Auditor must be approved in advance by the Audit

Committee. Deloitte did not receive any fees for non-audit

services during the year (2022: £nil).

Auditor Assessment, Independence and Re-appointment

The Audit Committee reviews the re-appointment of the Auditor

every year and has been satisfied with the effectiveness of

Deloitte’s performance on the audit just completed.

As part of the review of auditor independence and

effectiveness, Deloitte has confirmed that it is independent

of the Company and has complied with relevant auditing

standards. In evaluating Deloitte, the Audit Committee has

taken into consideration the standing, skills and experience of

the firm and the audit team. The Audit Committee, from direct

observation and enquiry of the Manager, remains satisfied that

Deloitte continues to provide effective independent challenge

in carrying out its responsibilities. Deloitte’s fee for the audit

(excluding VAT) was £33,500 (2022: £31,500).

Following professional guidelines, the Senior statutory auditor

rotates at least every five years. Michael Caullay, the current

senior statutory auditor was engaged for the first time during

the current year ended 31 March 2023, which was Deloitte’s

sixth year as Auditor. The Audit Committee also considered the

evaluation of Deloitte’s audit performance through the Audit

Quality Review performed by the Financial Reporting Council.

On the basis of this assessment, the Audit Committee has

recommended the re-appointment of Deloitte to the Board.

Helen Galbraith

Chairman of the Audit Committee

31 May 2023

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48 | CT UK High Income Trust PLC

Governance

Full details of the Company’s policy with regards to Directors’

fees, and fees paid during the year ended 31 March 2023,

are shown below. This shows all major decisions on Directors’

remuneration, and any substantial changes made during the

year relating to Directors’ remuneration, including the context in

which any changes occurred.

Under company law, the Auditor is required to audit certain

disclosures provided. Where disclosures have been audited

they are indicated as such. The Auditor’s opinion is included in

its report on pages 52 to 59.

The Board consists solely of independent non-executive

Directors. The Company has no executive Directors or

employees. The Engagement and Remuneration Committee is

responsible for determining the level of Directors’ fees and its

report is set out on page 43.

Directors’ Remuneration Policy

The Company’s policy is that the remuneration of non-executive

Directors should be set at a level commensurate with the skills

and experience necessary for the effective stewardship of the

Company and the expected contribution of the Board as a whole,

their responsibilities, duties and time commitment required and

be fair and comparable to that of other investment trusts that are

similar in size and have similar investment objectives. The policy

also provides for the Company’s reimbursement of all reasonable

travel and associated expenses incurred by the Directors in

attending Board and Committee meetings, including those treated

as a benefit in kind subject to tax and national insurance.

The Company has not received any views from its shareholders

in respect of the levels of Directors’ remuneration. It is

a requirement that shareholder approval of the policy is

sought at least every three years and this policy will be

put to shareholders for approval at the forthcoming AGM

(Resolution 2) and it is intended that the policy will continue for

the three year period ending at the AGM in 2026.

The fees for the non-executive Directors are determined within

the limits set out in the Company’s Articles of Association. The

present limit is £175,000 per annum in aggregate and may not

be changed without seeking shareholder approval at a general

meeting. Directors are not eligible for bonuses, pension benefits,

share options, long-term incentive schemes or other benefits.

The non-executive Directors are engaged under letters of

appointment and do not have service contracts. Each Director

has a letter of appointment setting out the terms and conditions

of his or her appointment and such letters are available

for inspection at the Company’s registered office during

business hours.

The dates on which each Director was appointed to the Board

are set out under their biographies on page 31. The terms of

appointment provide that a Director shall retire and be subject

to election at the first Annual General Meeting after his or

her appointment. Directors are thereafter obliged to retire

periodically and, if they wish, to offer themselves for re-election

by shareholders, at least every three years after that. However,

in accordance with the recommendations of the UK Code and

the AIC Code, the Board has agreed that all Directors will

retire annually and, if appropriate, seek re-election. With the

exception of Angus Pottinger (who was appointed with effect

from 24 November 2022), all the Directors were last re-elected

at the AGM held on 20 July 2022 and all will stand for election

or re-election at the AGM on 20 July 2023. There is no notice

period and no provision for compensation upon termination

of appointment.

Voting at Annual General Meeting on Directors‘ Remuneration

Policy

The Directors’ Remuneration Policy was last approved by

shareholders at the Company’s Annual General Meeting held on

27 July 2020. 97.0% of votes were in favour of the resolution

and 3.0% of votes were against.

Annual Statement

As Chairman of the Engagement and Remuneration Committee,

I confirm that throughout the year to 31 March 2023, Directors’

fees were unchanged.

Future Policy Table

Following a review of the level of Directors’ fees for the

forthcoming year, the Engagement and Remuneration Committee

concluded that the amount paid to Directors would increase

by £2,250 per annum for the Chairman, by £2,000 per annum

for the Audit Committee chairman and by £1,500 per annum

for each of the other Directors. It is anticipated that these fees

will then remain unchanged for the subsequent financial year to

31 March 2025.

Based on this, Directors’ fees for the financial year to

31 March 2024 would be as follows:

Director

31 March

2024

31 March

2023*

31 March

2022*

Chairman 41,250 39,000 39,000

Audit Committee chairman 34,500 32,500 32,500

Director 27,500 26,000 26,000

* Actual Directors’ fees for the years ended 31 March 2023 and 31 March 2022

respectively.

Directors’ Remuneration Report

Report and Accounts 2023 | 49

Governance

Annual Report on Directors’ Remuneration

Directors’ Emoluments for the Year (audited)

The Directors who served during the financial year received the following amounts for services as non-executive Directors for

the years ended 31 March 2023 and 2022 and can expect to receive the fees indicated for 2024 as well as reimbursement for

expenses necessarily incurred. No other forms of remuneration were paid during the year.

Fees for services to the Company (audited)

Fees

(audited)

Taxable benefits

(1)

(audited)

Total

(audited)

Anticipated

fees

(2)

Director

31 March

2023

31 March

2022

£ % change

31 March

2023

31 March

2022

£ % change

31 March

2023

31 March

2022

£ % change

31 March

2024

A K Watkins (Chairman)

(3)

35,118 26,000 +35.1 368 – +100.0 35,486 26,000 +36.5 41,250

J M Evans

(3)

11,887 39,000 -69.5 – 1,387 -100.0 11,887 40,387 -70.6 n/a

H M Galbraith 32,500 30,461 +6.7 276 – +100.0 32,776 30,461 +7.6 34,500

S J Mitchell 26,000 26,000 0.0 276 – +100.0 26,276 26,000 +1.1 27,500

J Le Blan

(4)

n/a 10,529 n/a n/a – n/a n/a 10,529 n/a n/a

A W Pottinger

(5)

9,207 n/a n/a – n/a – 9,207 n/a n/a 27,500

Total 114,712 131,990 -13.1 920 1,387 -33.7 115,632 133,377 -13.3 130,750

(1)

Comprises amounts reimbursed for expenses incurred in carrying out business for the Company, which have been grossed up to include PAYE and NI contributions.

(2)

Fees expected to be payable to the Directors during the year ended 31 March 2024. Taxable benefits are also anticipated but are not currently quantifiable.

(3)

J M Evans was the Chairman until he retired following the AGM on 20 July 2022. A K Watkins was then appointed Chairman.

(4)

Retired as a non-executive director on 27 July 2021.

(5)

Appointed as a non-executive director on 24 November 2022.

Annual Percentage Change

The table below sets out the annual percentage change in fees

for each director who served in the year under review.

Director

2023

(audited)

2022

(audited)

2021

(audited)

A K Watkins +35.1

(1)

+10.6 0.0

J M Evans -69.5

(2)

+13.0 +9.4

H M Galbraith +6.7 +43.5

(3)

n/a

S J Mitchell 0.0 +22.5

(4)

n/a

A W Pottinger n/a

(5)

n/a n/a

(1)

Appointed as Chairman following the AGM on 20 July 2022.

(2)

Retired as Chairman following the AGM on 20 July 2022.

(3)

Appointed as a non-executive director on 6 May 2020 and became Chairman

of the Audit Committee on 27 July 2021.

(4)

Appointed as a non-executive director on 6 May 2020.

(5)

Appointed as a non-executive director on 24 November 2022.

Relative Importance of Spend on Pay

The table below shows the actual expenditure during the year in

relation to Directors’ remuneration (excluding taxable benefits),

other expenses and shareholder distributions:

31 March

2023

31 March

2022

Change

Aggregate Directors’ Remuneration 114,712 131,990 -13.1

Management fee and other expenses 1,016,000 1,130,000 -10.1

Distributions paid to Shareholders 6,382,000 6,176,000 +3.3

Aggregate cost of shares repurchased 79,000 – +100.0

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50 | CT UK High Income Trust PLC

Governance

Directors’ Shareholdings (audited)

There is no requirement under the Company’s Articles of

Association for the Directors to hold shares in the Company.

The Directors who held office at the year end and their

interests in the shares of the Company at 31 March 2023

(all of which were beneficially held) were as follows:

31 March 2023 31 March 2022

Director

Ordinary

Shares B Shares

Ordinary

Shares B Shares

A K Watkins (Chairman) 16,057 – 10,000 –

H M Galbraith 12,000 – 12,000 –

S J Mitchell 12,675 – 12,675 –

A W Pottinger 15,000 – n/a n/a

There have been no changes in any of the Directors’ interests

in the shares of the Company between 31 March 2023 and

31 May 2023.

Company Performance

The Board is responsible for the Company’s investment

strategy and performance, whilst the management of the

investment portfolio is delegated to the Manager.

The following graph compares, for the required ten year period

to 31 March 2023, the total return (assuming all dividends and

capital repayments are reinvested) to Ordinary shareholders

and B shareholders compared to the total return on the

FTSE All-Share Index. This index was chosen for comparison

purposes, as it represents a comparable broad equity market

index; however it should be noted that up to 20% of the

Company’s assets were held in higher yielding securities

towards the start of this period.

An explanation of the performance of the Company is given in

the Chairman’s Statement and Manager’s Review.

Share Price Total Return and the FTSE All-Share Index

Total Return Performance Graph (rebased to 100 at

31 March 2013)

CT UK High Income Trust – Ordinary Share price total return

CT UK High Income Trust – B Share price total return

FTSE All-Share Index total return

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

100

110

120

130

140

150

160

170

180

190

200

210

Index

Source: Refinitiv Eikon

Voting at Annual General Meeting on Annual

Remuneration Report

At the Company’s last Annual General Meeting, held on 20 July

2022, shareholders approved the Directors’ Remuneration

Report in respect of the year ended 31 March 2022. 94.8% of

votes were in favour of the resolution and 5.2% were against.

An ordinary resolution for the approval of this Annual Report

on Directors’ Remuneration will be put to shareholders at the

forthcoming Annual General Meeting (Resolution 3).

On behalf of the Board

Stephen J Mitchell

Director

31 May 2023

Report and Accounts 2023 | 51

Governance

Statement of Directors’ Responsibilities in Relation to

the Annual Report and Financial Statements

The Directors are responsible for preparing the Annual Report

and Financial Statements in accordance with applicable

United Kingdom law and UK-adopted International Accounting

Standards. The Directors are also required to prepare a

Strategic Report, Directors’ Report, Directors’ Remuneration

Report and Corporate Governance Statement.

Company law requires the Directors to prepare financial

statements for each financial year. Under that law the Directors

have elected to prepare the financial statements in accordance

with UK-adopted International Accounting Standards.

Under company law the Directors must not approve the

financial statements unless they are satisfied that they give a

true and fair view of the state of affairs of the Company and

of the profit or loss for that period. In preparing these financial

statements the Directors are required to:

• select suitable accounting policies and then apply them

consistently;

• make judgements and accounting estimates that are

reasonable and prudent;

• state whether they have been prepared in accordance with

UK-adopted International Accounting Standards, subject

to any material departures disclosed and explained in the

financial statements;

• assess the Company’s ability to continue as a going

concern, disclosing, as applicable, matters related to going

concern; and

• use the going concern basis of accounting unless they

either intend to liquidate the Company or to cease

operations, or have no realistic alternative but to do so.

The Directors are responsible for keeping adequate accounting

records that are sufficient to show and explain the Company’s

transactions and disclose with reasonable accuracy at

any time the financial position of the Company and enable

them to ensure that the financial statements comply with

the Companies Act 2006. They are also responsible for

safeguarding the assets of the Company and hence for taking

reasonable steps for the prevention and detection of fraud and

other irregularities.

The Annual Report and Financial Statements is published

on the ctukhighincome.co.uk website which is maintained by

Columbia Threadneedle Investments. The work carried out by

the Auditor does not involve consideration of the maintenance

and integrity of the Company’s website and, accordingly, the

Auditor accepts no responsibility for any changes that may have

occurred to the financial statements since they were initially

presented on the website. Legislation in the United Kingdom

governing the preparation and dissemination of financial

statements may differ from legislation in other jurisdictions.

Responsibility statements under the Disclosure

Guidance and Transparency Rules in respect of the

Annual Report and Financial Statements

Each of the Directors listed on page 31 confirms that to the

best of their knowledge:

• the financial statements, prepared in accordance with

UK-adopted International Accounting Standards, give a true

and fair view of the assets, liabilities, financial position and

return of the Company;

• the Strategic Report and the Report of the Directors include

a fair review of the development and performance of the

business and the position of the Company together with a

description of the principal risks and uncertainties that they

face; and

• taken as a whole, the Annual Report and Financial

Statements are fair, balanced and understandable and

provide the information necessary for shareholders to

assess the performance, strategy and business model of

the Company.

On behalf of the Board

Andrew Watkins

Chairman

31 May 2023

Statement of Directors’ Responsibilities

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52 | CT UK High Income Trust PLC

Independent Auditor’s Report

Report on the audit of the financial statements

1. Opinion

In our opinion the financial statements of CT UK High Income Trust PLC (the ‘Company’):

• give a true and fair view of the state of the Company’s affairs as at 31 March 2023 and of its loss for the year then ended;

• have been properly prepared in accordance with United Kingdom adopted international accounting standards and the Statement

of Recommended Practice issued by the Association of Investment Companies in July 2022 “Financial Statements of Investment

Trust Companies and Venture Capital Trusts”; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

• the Statement of Comprehensive Income;

• the Statement of Financial Position;

• the Cash Flow Statement;

• the Statement of Changes in Equity; and

• the related notes 1 to 23.

The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom adopted

international accounting standards and the Statement of Recommended Practice issued by the Association of Investment

Companies in July 2022 “Financial Statements of Investment Trust Companies and Venture Capital Trusts”.

2. Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial

statements section of our report.

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial

statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest

entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We confirm that we have not

provided any non-audit services prohibited by the FRC’s Ethical Standard to the Company.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independent Auditor’s Report

to the members of CT UK High Income Trust PLC (Formerly BMO UK High Income Trust PLC)

Report and Accounts 2023 | 53

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Independent Auditor’s Report

3. Summary of our audit approach

Key audit matters The key audit matter that we identified in the current year was the valuation and ownership of

quoted investments.

Materiality The materiality that we used in the current year was £1.04m which was determined on the

basis of 1% of net assets at 31 March 2023.

Scoping Audit work to respond to the risks of material misstatement was performed directly by the

audit engagement team.

Significant changes in

our approach

There have been no significant changes in our audit approach for the current year.

4. Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the

preparation of the financial statements is appropriate.

Our evaluation of the directors’ assessment of the Company’s ability to continue to adopt the going concern basis of accounting

included:

• assessing the directors’ considerations regarding whether they consider it appropriate to adopt the going concern basis of

accounting;

• assessing the relevance and reliability of underlying data and key assumptions, such as cash flows and liquidity assumptions

used in the prepared forecasts;

• assessing whether the Company has complied with the revolving credit facility agreement for its borrowing to assess the

continued availability of the borrowing facility;

• assessing the impact of market volatility due to macroeconomic and geopolitical concerns, and by looking at business

continuity plans; and

• assessing the appropriateness of the going concern disclosures in the financial statements.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,

individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at

least twelve months from when the financial statements are authorised for issue.

In relation to the reporting on how the Company has applied the UK Corporate Governance Code, we have nothing material to add

or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it

appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of

this report.

54 | CT UK High Income Trust PLC

Independent Auditor’s Report

5. Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial

statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to

fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation

of resources in the audit; and directing the efforts of the engagement team.

These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion

thereon, and we do not provide a separate opinion on these matters.

5.1 Valuation and Ownership of quoted investments

Key audit matter description As an investment entity, the Company holds quoted investments of £112.8m (2022:

£111.1m) which make up 96.63% of total assets, being £116.7m (2022: £119.3m) as at

31 March 2023. Quoted investments represent the most quantitatively significant financial

statement line on the statement of financial position and are all classified as level 1 in the

hierarchy of fair value measurements.

Quoted investments are valued at the closing bid price at the year end. There is a risk

that the investment valuation and ownership of quoted investments is manipulated by

applying an incorrect share price or number of shares owned. This could result in material

misstatement of the net asset value of the Company.

The financial reporting process is outsourced to Columbia Threadneedle Investment

Business Limited (“the Manager”), who have in turn delegated certain accounting

responsibilities to State Street Bank and Trust Company (“State Street”), who maintain

the underlying accounting records for investment transactions and related balances. The

safeguarding of the assets has been outsourced to JP Morgan Chase Bank (“JP Morgan”).

Refer to note 1 (Investments) to the financial statements for the accounting policy on

investments and details of the investments are disclosed in note 11 to the financial

statements. The valuation of investments is included in the Audit Committee report as a

significant reporting matter on page 46.

How the scope of our audit

responded to the key audit matter

We have performed the following procedures to test the valuation and ownership of

investments at 31 March 2023:

• obtained an understanding of relevant controls at State Street over the ownership and

valuation of quoted investments, and relied on the operating effectiveness of these

controls;

• independently tested 100% of the investment portfolio values to the closing bid prices

published by an independent pricing source;

• confirmed the ownership of 100% of investments at the year-end date by obtaining

independent third party confirmations directly from JP Morgan; and

• tested the movement in the Company’s quoted investment portfolio from purchases and

sales during the year, and tested the recording of a sample of sales and purchases by

agreeing payments and receipts to the bank statements.

In addition, we performed the following procedures to assess whether the investment

portfolio was actively traded and designated with the correct fair value hierarchy:

• we assessed the post year-end volume of trade in order to identify investments that are

not actively traded; and

• tested the completeness and accuracy of disclosures in relation to fair value

measurements and liquidity risk.

Key observations Based on the work performed we concluded that the valuation and ownership of quoted

investments is appropriate.

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Independent Auditor’s Report

6. Our application of materiality

6.1. Materiality

We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic

decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of

our audit work and in evaluating the results of our work.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Materiality £1.04m (2022: £1.11m)

Basis for determining materiality 1% of net assets (2022: 1% of net assets).

Rationale for the benchmark applied Net assets has been selected as it is considered the most relevant benchmark for

investors and is the key driver of shareholder value.

Net Asset Value

Materiality

Net Asset Value £104.17m

Materiality £1.04m

Audit Committee

reporting threshold

£0.05m

6.2. Performance materiality

We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and

undetected misstatements exceed the materiality for the financial statements as a whole. Performance materiality was set at 70%

of materiality for the 2023 audit (2022: 70%). In determining performance materiality, we considered the following factors:

i. the quality of the control environment at service organisations;

ii. the fact that management have expressed willingness to investigate and correct any known misstatements, if applicable; and

iii. the fact that there were no corrected or uncorrected misstatements above our reporting threshold during the prior year audit.

6.3. Error reporting threshold

We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £52,000 (2022:

£55,000), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also

report to the audit committee on disclosure matters that we identified when assessing the overall presentation of the financial

statements.

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Independent Auditor’s Report

7. An overview of the scope of our audit

7.1. Scoping

Our audit was scoped by obtaining an understanding of the entity and its environment, including internal control, and assessing the

risks of material misstatement. Audit work to respond to the risks of material misstatement was performed directly by the audit

engagement team. The Company was audited as a single component.

7.2. Our consideration of the control environment

As part of our audit, we assessed the controls in place at the Manager and also the relevant controls in place at State Street. We

have reviewed the external assurance report of State Street to assess the control environments in place and the extent relevant to

our audit. As part of this, we relied upon the controls report of State Street and adopted a controls reliance approach with respect

to valuation and ownership of investments.

7.3. Our consideration of climate related risks

In planning our audit, we have considered the potential impact of climate change on the business and its financial statements. The

Company continues to develop its assessment of the potential impacts of environmental, social and governance (“ESG”) related

risks, including climate change, as outlined on page 19. As a part of our audit, we held discussions to understand the process of

identifying climate-related risks, the determination of mitigating actions and the impact on the Company’s financial statements.

We performed our own qualitative risk assessment of the potential impact of climate change on the account balances and classes

of transactions. We have read the disclosures in the annual report to consider whether they are materially consistent with the

financial statements and our knowledge obtained in the audit.

8. Other information

The other information comprises the information included in the annual report, other than the financial statements and our

auditor’s report thereon. The directors are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated

in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially

inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be

materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives

rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

9. Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the

financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors

determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to

fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going

concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the

directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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Independent Auditor’s Report

10. Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a

high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial

statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

11. Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which

our procedures are capable of detecting irregularities, including fraud is detailed below.

11.1 Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with

laws and regulations, we considered the following:

• the nature of the industry and sector, control environment and business performance including the design of the Company’s

remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

• results of our enquiries of management, directors and the audit committee about their own identification and assessment of

the risks of irregularities, including those that are specific to the company’s sector;

• any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating

to:

• identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-

compliance;

• detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged

fraud;

• the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

• the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial

statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud

and identified the greatest potential for fraud in the valuation and ownership of quoted investments. In common with all audits

under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the Company operates in, focusing on provisions

of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial

statements. The key laws and regulations we considered in this context included the UK Companies Act, Listing Rules and UK tax

legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but

compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. This included the

requirements of the United Kingdom’s Financial Conduct Authority (FCA).

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58 | CT UK High Income Trust PLC

Independent Auditor’s Report

11.2 Audit response to risks identified

As a result of performing the above, we identified the valuation and ownership of quoted investments as a key audit matter related

to the potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the

specific procedures we performed in response to that key audit matter.

In addition to the above, our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of

relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management and the audit committee concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material

misstatement due to fraud;

• reading minutes of meetings of those charged with governance; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and

other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential

bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of

business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and

remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Report on other legal and regulatory requirements

12. Opinions on other matters prescribed by the Companies Act 2006

In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the

Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the strategic report and the directors’ report for the financial year for which the financial statements are

prepared is consistent with the financial statements; and

• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have

not identified any material misstatements in the strategic report or the directors’ report.

13. Corporate Governance Statement

The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the

Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK Corporate Governance Code

specified for our review.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate

Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:

• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material

uncertainties identified on Page 33 of Annual Report;

• the directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the

period is appropriate on Page 28 of Annual Report;

• the directors’ statement on fair, balanced and understandable on Page 32 of Annual Report;

• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks on Page 28 of Annual

Report;

• the section of the annual report that describes the review of effectiveness of risk management and internal control systems on

Page 25 of Annual Report; and

• the section describing the work of the audit committee on Page 44 of Annual Report.

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Independent Auditor’s Report

14. Matters on which we are required to report by exception

14.1. Adequacy of explanations received and accounting records

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit; or

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not

visited by us; or

• the financial statements are not in agreement with the accounting records and returns.

We have nothing to report in respect of these matters.

14.2. Directors’ remuneration

Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have

not been made or the part of the directors’ remuneration report to be audited is not in agreement with the accounting records and

returns.

We have nothing to report in respect of these matters.

15. Other matters which we are required to address

15.1. Auditor tenure

Following the recommendation of the audit committee, we were first appointed by the members of the Company on 29 June

2017 to audit the financial statements for the year ending 31 March 2018 and subsequent financial periods. The period of total

uninterrupted engagement including previous renewals and reappointments of the firm is 6 years, covering the years ending 31

March 2018 to 31 March 2023.

15.2. Consistency of the audit report with the additional report to the audit committee

Our audit opinion is consistent with the additional report to the audit committee we are required to provide in accordance with

ISAs (UK).

16. Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act

2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to

state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for

the opinions we have formed.

Michael Caullay (Senior statutory auditor)

For and on behalf of Deloitte LLP

Statutory Auditor

Glasgow, United Kingdom

31 May 2023

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60 | CT UK High Income Trust PLC

Financial Report

Notes

Revenue

Year to

31 March

2023

£’000

Capital

Year to

31 March

2023

£’000

Total

Year to

31 March

2023

£’000

Revenue

Year to

31 March

2022

£’000

Capital

Year to

31 March

2022

£’000

Total

Year to

31 March

2022

£’000

Capital losses on investments

11 Losses on investments held at fair value through profit or loss – (4,177) (4,177) – (1,087) (1,087)

Exchange gains/(losses) 3 (16) (13) – 5 5

Revenue

2 Income 5,007 – 5,007 5,013 – 5,013

Total income 5,010 (4,193) 817 5,013 (1,082) 3,931

Expenditure

4 Investment management fee (183) (427) (610) (227) (529) (756)

5 Other expenses (521) – (521) (506) – (506)

Total expenditure (704) (427) (1,131) (733) (529) (1,262)

Profit/(loss) before finance costs and tax 4,306 (4,620) (314) 4,280 (1,611) 2,669

Finance costs

7 Interest on bank loans (67) (155) (222) (78) (183) (261)

Total finance costs (67) (155) (222) (78) (183) (261)

Profit/(loss) before tax 4,239 (4,775) (536) 4,202 (1,794) 2,408

8 Taxation (47) – (47) (24) – (24)

Profit/(loss) and total comprehensive income/(expense) for the year 4,192 (4,775) (583) 4,178 (1,794) 2,384

10 Earnings per share 3.62p (4.12)p (0.50)p 3.61p (1.55)p 2.06p

The total column of this statement represents the Company’s Income Statement and Statement of Comprehensive Income,

prepared in accordance with UK-adopted International Accounting Standards. The supplementary revenue return and capital return

columns are both prepared under guidance published by the Association of Investment Companies.

All revenue and capital items in the above statement derive from continuing operations.

No operations were acquired or discontinued in the year.

The accompanying notes on pages 64 to 78 are an integral part of these financial statements.

Statement of Comprehensive Income

For the year to 31 March

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Notes

2023

£’000

2022

£’000

Non-current assets

11 Investments held at fair value through profit or loss 113,018 111,362

Current assets

13 Receivables 1,394 3,210

14 Cash and cash equivalents 2,288 4,686

3,682 7,896

Total assets 116,700 119,258

Current liabilities

15 Payables (529) (543)

16 Bank loans (12,000) (7,500)

(12,529) (8,043)

Total liabilities (12,529) (8,043)

Net assets 104,171 111,215

Equity attributable to equity shareholders

17 Share capital 134 134

18 Share premium 153 153

Capital redemption reserve 5 5

Buy back reserve 80,315 80,394

Special capital reserve 10,012 11,704

Capital reserves 9,823 14,598

Revenue reserve 3,729 4,227

Equity shareholders’ funds 104,171 111,215

19 Net asset value per Ordinary share 89.97p 95.97p

19 Net asset value per B share 89.97p 95.97p

Company Number: SC314671

Approved by the Board and authorised for issue on 31 May 2023 and signed on its behalf by:

Andrew Watkins, Director

The accompanying notes on pages 64 to 78 are an integral part of these financial statements.

Financial Report

Statement of Financial Position

As at 31 March

62 | CT UK High Income Trust PLC

Financial Report

Notes

Year to

31 March

2023

£’000

Year to

31 March

2022

£’000

Cash flows from operating activities

(Loss)/profit before taxation (536) 2,408

Adjustments for:

11 Losses on investments held at fair value through profit or loss 4,177 1,087

Exchange losses/(gains) 13 (5)

2 Interest income (70) (5)

Interest received 70 5

2 Dividend income (4,937) (5,008)

Dividend income received 4,698 4,935

Increase in receivables (64) (5)

(Decrease)/increase in payables (15) 2

Finance costs 222 261

Overseas tax suffered (76) (49)

Cash flows from operating activities 3,482 3,626

Cash flows from investing activities

11 Purchases of investments (45,856) (10,594)

Sales of investments 42,153 19,264

Cash flows from investing activities (3,703) 8,670

Cash flows before financing activities (221) 12,296

Cash flows from financing activities

9 Dividends paid on Ordinary shares (4,690) (4,540)

9 Capital returns paid on B shares (1,692) (1,636)

17 Shares purchased for treasury (79) –

Interest on bank loans (203) (249)

Drawdown/(repayment) of bank loans 4,500 (3,500)

Cash flows from financing activities (2,164) (9,925)

Net (decrease)/increase in cash and cash equivalents (2,385) 2,371

Cash and cash equivalents at the beginning of the year 4,686 2,310

Effect of movement in foreign exchange (13) 5

Cash and cash equivalents at the end of the year 2,288 4,686

Represented by:

Cash at bank 199 77

Short term deposits 2,089 4,609

2,288 4,686

The accompanying notes on pages 64 to 78 are an integral part of these financial statements.

Cash Flow Statement

For the year to 31 March

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Financial Report

Notes

Capital

£’000

Premium

£’000

Capital

Redemption

Reserve

£’000

Buy back

Reserve

£’000

Special

Capital

Reserve

£’000

Capital

Reserve –

investments

sold

£’000

Capital

Reserve –

investments

held

£’000

Revenue

Reserve

£’000

Total

£’000

Balance as at 31 March 2022 134 153 5 80,394 11,704 8,001 6,597 4,227 111,215

Movement during the year ended

31 March 2023

(Loss)/profit for the year – – – – – (36) (4,739) 4,192 (583)

Total comprehensive income/

(expense) for the year

– – – – – (36) (4,739) 4,192 (583)

Transactions with owners of the

Company recognised directly in

equity

17 Shares bought back for treasury – – – (79) – – – – (79)

9 Dividends paid on Ordinary shares – – – – – – – (4,690) (4,690)

9 Capital returns paid on B shares – – – – (1,692) – – – (1,692)

Balance as at 31 March 2023 134 153 5 80,315 10,012 7,965 1,858 3,729 104,171

Notes

Capital

£’000

Premium

£’000

Capital

Redemption

Reserve

£’000

Buy back

Reserve

£’000

Special

Capital

Reserve

£’000

Capital

Reserve –

investments

sold

£’000

Capital

Reserve –

investments

held

£’000

Revenue

Reserve

£’000

Total

£’000

Balance as at 31 March 2021 134 153 5 80,394 13,340 3,083 13,309 4,589 115,007

Movement during the year ended

31 March 2022

Profit/(loss) for the year – – – – – 4,918 (6,712) 4,178 2,384

Total comprehensive income/

(expense) for the year

– – – – – 4,918 (6,712) 4,178 2,384

Transactions with owners of the

Company recognised directly in

equity

9 Dividends paid on Ordinary shares – – – – – – – (4,540) (4,540)

9 Capital returns paid on B shares – – – – (1,636) – – – (1,636)

Balance as at 31 March 2022 134 153 5 80,394 11,704 8,001 6,597 4,227 111,215

The accompanying notes on pages 64 to 78 are an integral part of these financial statements.

Statement of Changes in Equity

For the year to 31 March

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64 | CT UK High Income Trust PLC

Financial Report

1. Accounting policies

A summary of the principal accounting policies is set out below.

Basis of Preparation

The financial statements of the Company have been prepared on a going concern basis and in accordance with the Companies Act

2006 and UK-adopted International Accounting Standards.

The Company’s subsidiary undertaking Investors Securities Company Limited has not been consolidated in the financial

statements as it is exempt in accordance with section 405(2) of the Companies Act 2006 on grounds of materiality. Investors

Securities Company Limited has been classified at fair value through profit or loss in the Statement of Financial Position.

Where presentational guidance set out in the Statement of Recommended Practice (“SORP”) for investment trusts issued by

the Association of Investment Companies (“AIC”) is consistent with the requirements of UK-adopted International Accounting

Standards, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of

the SORP.

The notes and financial statements are presented in pounds sterling (functional and presentational currency) because that is the

currency of the primary economic environment in which the Company operates. They are rounded to the nearest thousand except

where otherwise indicated.

The Board confirms that no significant accounting judgements or estimates have been applied to the financial statements and

therefore there is not a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the

next financial year.

In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial

Reporting Council. After making enquiries, and bearing in mind the nature of the Company’s business and assets, the Directors

consider that the Company has adequate resources to continue in operational existence for a period of at least twelve months

from the date of approval of the financial statements. For this reason, they continue to adopt the going concern basis in preparing

the financial statements. Further detail is included in the Report of the Directors on page 33.

The accounting policies adopted are consistent with those of the previous financial year, and no new standards have been adopted

in the current year.

Presentation of Statement of Comprehensive Income

In order to reflect better the activities of an investment trust company and in accordance with guidance issued by the AIC,

supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital

nature has been presented alongside the Statement of Comprehensive Income. The net revenue return is the measure the

Directors believe appropriate in assessing the Company’s compliance with certain requirements set out in Section 1158

Corporation Tax Act 2010.

Investments

Investments are recognised and derecognised on the trade date where a purchase or sale is under a contract whose terms require

delivery within the timeframe established by the market concerned, and are initially measured at fair value.

Investments are classified as fair value through profit or loss. As the entity’s business is investing in financial assets with a view

to profiting from their total return in the form of interest, dividends or increases in fair value, listed equities are designated as fair

value through profit or loss on initial recognition.

Notes to the Financial Statements

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Financial Report

1. Accounting policies (Continued)

Financial assets designated as at fair value through profit or loss are measured at subsequent reporting dates at fair value, which

is either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted.

Unlisted investments, including the subsidiary, are valued at fair value by the Directors on the basis of all information available to

them at the time of valuation.

Where securities are designated upon initial recognition as fair value through profit or loss, gains and losses arising from

changes in fair value are included in net profit or loss for the period as a capital item. On derecognition any gain or loss arising is

transferred from the Capital reserve – Investments Held to Capital reserve – Investments Sold.

Accounting standards recognise a hierarchy of fair value measurements for financial instruments which gives the highest priority to

unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs

(Level 3). The classification of financial instruments depends on the lowest significant applicable input, as follows:

Level 1 – quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 – other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either

directly or indirectly.

Level 3 – techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable

market data. The Company’s investment in its subsidiary is included in Level 3 and is valued at its equity value.

Receivables

Receivables do not carry any interest and are short term in nature and are accordingly stated at their nominal value as reduced by

appropriate allowances for estimated irrecoverable amounts.

Cash and cash equivalents

Cash in banks and short term deposits that are held to maturity are carried at cost. Cash and cash equivalents consist of cash in

hand and short term deposits in banks with an original maturity of three months or less.

Financial liabilities and equity

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered

into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its

liabilities. Financial liabilities and equity instruments are initially recorded at the proceeds received, net of issue costs.

Bank borrowings

Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance charges,

including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the

Statement of Comprehensive Income using the effective interest method and are added to the carrying amount of the instrument

to the extent that they are not settled in the period in which they arise.

Payables

Payables are not interest bearing and are stated at their nominal value.

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Financial Report

1. Accounting policies (Continued)

Reserves

(a) Share premium – the surplus of net proceeds received from the issue of new shares over the par value of such shares is

credited to this account. The majority of the balance of this account which arose as a result of the issue of new shares at

launch was subsequently cancelled by the Court of Session to create the Buyback reserve and Special capital reserve. These

reserves are explained below. To the extent that the consideration received exceeds the value at which the shares were initially

bought into treasury, the gain arising on the resale of shares from treasury will be credited to the share premium account.

The share premium account is non-distributable.

(b) Capital redemption reserve – the nominal value of any of the shares bought back for cancellation is added to this reserve. This

reserve is non-distributable.

(c) Buyback reserve – created from the Court cancellation of the share premium account which had arisen from premiums paid

on the A Shares. Available as distributable profits to be used for the buy back of shares. The cost of any shares bought back

is deducted from this reserve. The cost of any shares resold from treasury is added back to this reserve. (The A shares were

subsequently renamed Ordinary shares).

(d) Special capital reserve – created from the Court cancellation of the share premium account which had arisen from premiums

paid on the B shares. Available for paying capital returns on the B shares.

(e) Capital reserves

Capital reserve – investments sold – gains and losses on realisation of investments are dealt with in this reserve together with

the proportion of management fees, interest and taxation allocated to capital. This reserve also includes dividends of a capital

nature.

Capital reserve – investments held – increases and decreases in the valuation of investments held are accounted for in this

reserve, together with unrealised exchange differences on forward foreign currency contracts.

The Company’s Articles of Association allow distributions to be made from realised capital reserves where the balance on this

reserve is positive.

(f) Revenue reserve – the net profit/(loss) arising in the revenue column of the Statement of Comprehensive Income is added to

or deducted from this reserve. Available for paying dividends on the Ordinary shares.

Income

Dividends are recognised as income on the date that the related investments are marked ex-dividend.

Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company’s right to

receive payment is established.

Special dividends of a non-capital nature are recognised through the revenue column of the Statement of Comprehensive Income.

Where the Company has elected to receive its dividends in the form of additional shares rather than cash, an amount equal to the

cash dividend is recognised as income.

Interest income from fixed interest securities is accrued on a time apportioned basis, by reference to the principal outstanding

and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the

expected life of the financial asset to that asset’s net carrying amount. Other investment income and deposit interest are included

on an accruals basis.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the

Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other

periods and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using

tax rates that have been enacted or substantively enacted by the balance sheet date.

Report and Accounts 2023 | 67

Financial Report

1. Accounting policies (Continued)

Deferred taxation

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities

in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using

the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax

assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary

differences can be utilised.

Investment trusts which have approval under section 1158 Corporation Tax Act 2010 are not liable for taxation on capital gains.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer

probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is

realised. Deferred tax is charged or credited in the Statement of Comprehensive Income, except when it relates to items charged

or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Expenses and interest

All expenses are accounted for on an accruals basis. Expenses are charged through the revenue column of the Statement of

Comprehensive Income except where incurred in connection with the maintenance or enhancement of the value of the Company’s

investment portfolio taking account of the expected long term split of returns as follows:

– Interest payable on the bank loans is recognised on an effective yield basis and allocated 30 per cent to revenue and 70 per

cent to capital.

– Management fees have been allocated 30 per cent to revenue and 70 per cent to capital.

Foreign currency

Transactions denominated in foreign currencies are expressed in pounds sterling at actual exchange rates as at the date of

the transaction. Monetary assets and liabilities denominated in foreign currencies at the year end are reported at the rates of

exchange prevailing at the year end. Non-monetary non current assets held at fair value through profit and loss and denominated

in foreign currencies are reported at the rates of exchange prevailing when the fair value was assessed. Any gain or loss arising

from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss in either the

capital or revenue column of the Statement of Comprehensive Income depending on whether the gain or loss is of a capital or

revenue nature respectively.

Rates of exchange at 31 March 2023 2022

Euro 1.1381 1.1834

Swiss Franc 1.1296 1.2117

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Financial Report

2. Income

2023

£’000

2022

£’000

Income from investments

UK dividend income 3,884 3,920

UK dividend income – special dividends 99 656

Overseas dividend income 880 305

Property income distributions 74 127

4,937 5,008

Other income

Interest on cash and cash equivalents 70 5

Total income 5,007 5,013

Total income comprises:

Dividends 4,937 5,008

Interest on cash and cash equivalents 70 5

Total income 5,007 5,013

Income from investments:

Listed 4,937 5,008

3. Operating segments

The Board has considered the requirements of IFRS 8 ‘Operating Segments’. The Board is of the view that the Company is

engaged in a single segment of business, of investing in equity and that therefore the Company has only a single operating

segment. The Board of Directors, as a whole, has been identified as constituting the chief operating decision maker of the

Company. The key measure of performance used by the Board to assess the Company’s performance is the total return on the

Company’s net asset value as calculated under UK-adopted International Accounting Standards and therefore no reconciliation is

required between the measure of profit or loss used by the Board and that contained in the financial statements.

4. Investment management fee

Revenue

£’000

Capital

£’000

2023

Total

£’000

Revenue

£’000

Capital

£’000

2022

Total

£’000

Investment management fee 183 427 610 227 529 756

The Company’s investment manager is Columbia Threadneedle Investment Business Limited. The contract between the Company

and Columbia Threadneedle Investment Business Limited may be terminated at any date by either party giving six months’ notice

of termination. In the event of the Company terminating the contract by giving less than six months’ notice, Columbia Threadneedle

Investment Business Limited is entitled to compensation calculated as a proportion of the fees payable by the Company in respect

of the previous financial year.

With effect from 1 April 2022, the Manager receives an investment management fee of 0.60% per annum of the net asset value

of the Company payable quarterly in arrears. Prior to 1 April 2022, the investment management fee was 0.65% per annum of the

Company’s net asset value.

The investment management fee for the quarter ended 31 March 2023 of £154,000 (2022: £178,000) is due to the Company’s

investment manager at the year end.

Report and Accounts 2023 | 69

Financial Report

5. Other expenses

2023

£’000

2022

£’000

Auditor’s remuneration:

– for audit services

(1)

40 38

Broker and professional fees 76 49

Custody and depository 20 20

Directors’ fees for services to the Company (Note 6) 115 132

Marketing 56 88

Printing and postage 51 41

Registrar’s fees and expenses 42 33

Revolving credit facility committment fee 44 20

Subscription and listing fees 41 46

Sundry expenses 36 39

Total other expenses 521 506

All expenses are stated gross of irrevocable VAT, where applicable.

(1)

Auditor’s remuneration for audit services, exclusive of VAT, amounts to £33,500 (2022: £31,500).

6. Directors’ fees

The emoluments of the Chairman, the highest paid Director, were at the rate of £39,000 per annum (2022: £39,000).

Other Directors’ emoluments amounted to £26,000 (2022: £26,000) each per annum, with the chairman of the Audit Committee

receiving an additional £6,500 (2022: £6,500) per annum. Full details are provided in the Directors’ Remuneration Report on

pages 48 to 50.

7. Finance costs

2023

Revenue

£’000

2023

Capital

£’000

2023

Total

£’000

2022

Revenue

£’000

2022

Capital

£’000

2022

Total

£’000

Finance costs attributable to term loan 30 69 99 62 146 208

Finance costs attributable to revolving credit facility 37 86 123 16 37 53

Total finance costs 67 155 222 78 183 261

Finance costs have been allocated 30 per cent to revenue and 70 per cent to capital in accordance with the Company‘s

accounting policies.

8a. Tax on ordinary activities

2023

Revenue

£’000

2023

Capital

£’000

2023

Total

£’000

2022

Revenue

£’000

2022

Capital

£’000

2022

Total

£’000

Overseas taxation 47 – 47 24 – 24

Total taxation charge (see note 8(b)) 47 – 47 24 – 24

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Financial Report

8b. Factors affecting tax charge for current year

A reconciliation of the current tax charge for the current year is set out below:

2023

Revenue

£’000

2023

Capital

£’000

2023

Total

£’000

2022

Revenue

£’000

2022

Capital

£’000

2022

Total

£’000

Profit/(loss) before tax 4,239 (4,775) (536) 4,202 (1,794) 2,408

Profit/(loss) multiplied by the effective rate of

corporation tax of 19.0% (2022: 19.0%) 805 (907) (102) 798 (341) 457

Effects of:

Non taxable dividend income (924) – (924) (927) – (927)

Expenses not utilised in the year 119 111 230 129 135 264

Overseas taxation suffered 47 – 47 24 – 24

Non taxable capital losses – 796 796 – 206 206

Total taxation (see note 8(a)) 47 – 47 24 – 24

The deferred tax asset of £3,701,000 (2022: £3,400,000) in respect of unutilised expenses at 31 March 2023 has not been

recognised as it is uncertain that there will be taxable profits from which the future reversal of the deferred tax asset could be

deducted. The deferred tax asset has been calculated at the prospective UK corporation tax rate of 25% which takes effect from

1 April 2023 (2022: 25% main rate of corporation tax).

9. Dividends and capital repayments

Payment

date

2023

Revenue

£’000

2023

Capital

£’000

2023

Total

£’000

2022

Revenue

£’000

2022

Capital

£’000

2022

Total

£’000

Amounts recognised as distributions to shareholders in the year:

For the year ended 31 March 2022

Fourth interim dividend at 1.55p (2021: 1.43p) per Ordinary share 6-May-22 1,320 – 1,320 1,218 – 1,218

Fourth capital repayment at 1.55p (2021: 1.43p) per B share 6-May-22 – 476 476 – 439 439

For the year ended 31 March 2023

First interim dividend at 1.32p (2022: 1.29p) per Ordinary share 5-Aug-22 1,124 – 1,124 1,099 – 1,099

First capital repayment at 1.32p (2022: 1.29p) per B share 5-Aug-22 – 405 405 – 396 396

Second interim dividend at 1.32p (2022: 1.29p) per Ordinary share 4-Nov-22 1,123 – 1,123 1,099 – 1,099

Second capital repayment at 1.32p (2022: 1.29p) per B share 4-Nov-22 – 406 406 – 396 396

Third interim dividend at 1.32p (2022: 1.32p) per Ordinary share 3-Feb-23 1,123 – 1,123 1,124 – 1,124

Third capital repayment at 1.32p (2022: 1.32p) per B share 3-Feb-23 – 405 405 – 405 405

4,690 1,692 6,382 4,540 1,636 6,176

Amounts relating to the year but not paid at the year end:

Fourth interim dividend at 1.55p (2022: 1.55p) per Ordinary share 5-May-23 1,319 – 1,319 1,320 – 1,320

Fourth capital repayment at 1.55p (2022: 1.55p) per B share 5-May-23 – 476 476 – 476 476

1,319 476 1,795 1,320 476 1,796

As shown in the preceding table, the Directors have declared a fourth interim dividend and capital repayment in respect of the

year ended 31 March 2023 of 1.55p per share, which was paid on 5 May 2023 to shareholders on the register on 11 April 2023.

Although these payments relate to the year ended 31 March 2023, under UK-adopted International Accounting Standards they will

be accounted for in the period during which they are paid.

Report and Accounts 2023 | 71

Financial Report

9. Dividends and capital repayments (continued)

The dividends paid and payable in respect of the financial year ended 31 March 2023, which form the basis of the retention test

under Chapter 4, Part 24 of the Corporation Taxes Act 2010 are as follows:

2023

£’000

Revenue available for distribution by way of dividends for the year 4,192

First of four interims for the year ended 31 March 2023 of 1.32p per share (1,124)

Second of four interims for the year ended 31 March 2023 of 1.32p per share (1,123)

Third of four interims for the year ended 31 March 2023 of 1.32p per share (1,123)

Fourth of four interims for the year ended 31 March 2023 of 1.55p per share* (1,319)

Transferred from revenue reserve (497)

*based on 85,072,653 Ordinary shares in issue at the record date of 11 April 2023.

10. Earnings per share

The Company’s earnings per share are based on the loss for the year of £(583,000) (year to 31 March 2022: profit of £2,384,000)

and on 85,118,954 Ordinary shares (2022: 85,172,653) and 30,708,750 B shares (2022: 30,708,750), being the weighted

average number of shares in issue of each share class during the year.

The Company’s revenue earnings per share are based on the revenue profit for the year of £4,192,000 (year to 31 March 2022:

£4,178,000) and on the weighted average number of shares in issue as above.

The Company’s capital earnings per share are based on the capital loss for the year of £(4,775,000) (year to 31 March 2022:

loss £(1,794,000)) and on the weighted average number of shares in issue as above.

11. Investments held at fair value through profit or loss

2023

£’000

2022

£’000

Listed securities 112,768 111,112

Subsidiary undertaking 250 250

113,018 111,362

Listed/

Quoted

(Level 1)

£’000

Subsidiary/

Unlisted

(Level 3)*

£’000

Total

£’000

Cost brought forward 104,515 250 104,765

Gains brought forward 6,597 – 6,597

Fair value of investments at 31 March 2022 111,112 250 111,362

Purchases at cost 45,856 – 45,856

Sales proceeds (40,023) – (40,023)

Gains on investments sold in year 562 – 562

Losses on investments held at year end (4,739) – (4,739)

Fair value of investments at 31 March 2023 112,768 250 113,018

Cost at 31 March 2023 110,910 250 111,160

Gains at 31 March 2023 1,858 – 1,858

Fair value of investments at 31 March 2023 112,768 250 113,018

* Level 3 is the investment in the subsidiary undertaking, Investors Securities Company Limited, which is valued at its net asset value and for which observable market

data is not applicable.

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Financial Report

11. Investments held at fair value through profit or loss (Continued)

2023

£’000

2022

£’000

Equity investments 113,018 111,362

Gains on investments sold in year 562 5,625

Losses on investments held at year end (4,739) (6,712)

Total losses in year (4,177) (1,087)

The Company incurred transaction costs of £171,500 (2022: £31,500) on the purchase of assets and £18,000 (2022: £8,900)

on the sale of assets in the year.

Gains on investments sold in the year represents the difference between the net proceeds of sale and the book cost of the

investments sold. Investments sold during the year have been revalued over time since their original purchase, and until they were

sold any unrealised gains/losses were included in the fair value of the investments.

Losses on investments held at year end represents the decrease in the difference between the book cost of investments held and

their market value at 31 March 2023 compared with the difference between the book cost of investments held and their market

value at 31 March 2022.

12. Significant interests

As at 31 March 2023, the Company’s subsidiary undertaking which deals in investments is:

Country of

incorporation

or Registration

Class of

Capital

Capital and

Reserves

£’000

Profit for

the year

£’000

% of

Class

held

% of

Equity

held

Valuation

at 31.03.23

and 31.03.22

£’000

Investors Securities Company Limited Scotland Ordinary 250 – 100 100 250

The registered office of Investors Securities Company Limited is 6th Floor, Quartermile 4, 7a Nightingale Way, Edinburgh EH3 9EG.

At 31 March 2023, no investments were held by the dealing subsidiary and it did not trade during the year. The accounts of this

subsidiary have not been consolidated with those of the Company as, in the opinion of the Directors, it is not material.

13. Receivables

2023

£’000

2022

£’000

Income receivable from shares and securities 1,175 936

Due from brokers in settlement of sales of investments – 2,130

Withholding tax recoverable 140 111

Sundry debtors and prepayments 79 33

1,394 3,210

14. Cash and cash equivalents

All cash balances in the current and prior year were held in cash, current accounts or in banks on short term deposits with an

original maturity of three months or less at the year end.

15. Payables

2023

£’000

2022

£’000

Loan from subsidiary undertaking repayable on demand 250 250

Investment management fee payable to the manager 154 178

Loan Interest 3 2

Accrued expenses 122 113

529 543

Report and Accounts 2023 | 73

Financial Report

16. Bank loans

2023

£’000

2022

£’000

Revolving credit facility 12,000 –

£7.5 million term loan maturing 28 September 2022 – 7,500

12,000 7,500

At 31 March 2023, the Company has an unsecured revolving credit facility (“RCF”) with The Royal Bank of Scotland International

Limited for £15 million which is available until 28 September 2025. At 31 March 2023, £12 million was drawn down.

The loan agreement contains certain financial covenants with which the Company must comply. These include a financial covenant

with respect to the ratio of the Adjusted Portfolio Value (as defined in the loan agreement) to the level of debt and also that the

Adjusted Portfolio Value does not fall below £50 million. The Company complied with the required financial covenants throughout the

period since drawdown.

Until 28 September 2022, the Company had a £7.5 million unsecured term loan from Scotiabank Europe plc at a fixed interest rate

of 2.58% per annum. It also had a £7.5 million unsecured multicurrency revolving credit facility (‘RCF’) with Scotiabank (Ireland)

Designated Activity Company. On 28 September 2022 both loan facilities matured and the £7.5 million unsecured term loan was

repaid to Scotiabank Europe plc. At that time, £nil was drawn down under the RCF.

17. Share capital

Allotted, issued and fully paid

Number

Listed

£ Number

Held in

Treasury

£ Number

In Issue

Ordinary shares of 0.1p each

Balance at 1 April 2022 102,067,144 102,067 (16,894,491) (16,894) 85,172,653 85,173

Repurchased to be held in treasury – – (100,000) (100) (100,000) (100)

Balance at 31 March 2023 102,067,144 102,067 (16,994,491) (16,994) 85,072,653 85,073

B shares of 0.1 pence each

Balance at 1 April 2022 32,076,703 32,077 (1,367,953) (1,368) 30,708,750 30,709

Balance at 31 March 2023 32,076,703 32,077 (1,367,953) (1,368) 30,708,750 30,709

Total at 31 March 2023 134,143,847 134,144 (18,362,444) (18,362) 115,781,403 115,782

During the year the Company bought back 100,000 Ordinary shares (2022: nil Ordinary shares) to hold in treasury at a cost of

£79,000 (2022: £nil). During the year the Company bought back nil B shares (2022: nil B Shares).

At 31 March 2023 the Company held 16,994,491 Ordinary shares (2022: 16,894,491 Ordinary shares) and 1,367,953 B shares

(2022: 1,367,953 B shares) in treasury.

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17. Share capital (Continued)

Shareholder entitlements

The Company has two classes of shares: Ordinary shares and B shares. The rights of each class of shares are identical, save in

respect of the right to participate in dividends and capital repayments. Ordinary shares are entitled to all dividends paid by the

Company and no dividends may be paid to B shareholders. B shareholders are entitled to capital repayments from the Company

at an amount per share equal to, but not exceeding, any dividend paid per share to Ordinary shareholders. The capital repayments

are paid out of the special capital reserve and accordingly will only be able to be paid for so long as the amount of the special

capital reserve remains sufficient. If and when this reserve is exhausted, the Articles of Association provide that all the Ordinary

shares and all the B shares automatically convert into Ordinary shares with identical rights.

The net asset value attributable to each class of share is the same. Apart from voting rights entitlements at separate class

meetings, every Ordinary share and every B share carries equal voting rights. Upon a winding up or reconstruction of the Company,

each Ordinary share and each B share shall have an equal right to share in the residual assets of the Company.

18. Share premium account and reserves

In 2007, the Court of Session confirmed the cancellation of the entire amount originally standing to the credit of the share

premium account and the creation of two distinct reserves, the first reserve relating to that part of the cancelled share premium

account arising from premiums paid on the A shares (the “buy back reserve”) and the second reserve relating to that part of the

cancelled share premium account arising from premiums paid on the B shares (the “special capital reserve”).

The Company will apply these two reserves as follows:

• the buy back reserve will be available as distributable profits to be used for the buy back of both Ordinary shares and B shares;

and

• the special capital reserve will be used for the purpose of paying capital repayments on the B shares.

Capital management

The Company’s capital is represented by the issued share capital, share premium account, capital redemption reserve, buy back

reserve, special capital reserve, capital reserve – investments sold, capital reserve – investments held and revenue reserve.

Details of the movement through each reserve are shown in the Statement of Changes in Equity. The Company is not subject to

any externally imposed capital requirements.

The capital of the Company is managed in accordance with its investment policy, in pursuit of its investment objective, both of

which are detailed in the Purpose, Strategy and Business Model and Principal Policies and the Report of the Directors. In order to

maintain an optimal capital structure through varying market conditions the Company has the ability to:

– issue and buyback share capital within limits set by the shareholders in general meeting;

– borrow money in the short and long term;

– pay dividends to Ordinary shareholders out of current year revenue earnings as well as out of the brought forward revenue

reserve; and

– pay capital repayments to B shareholders out of the special capital reserve.

The Company’s Articles of Association allow distributions to be made from realised capital reserves where the balance on this

reserve is positive.

The Company has the power under its Articles to borrow an amount up to 100 per cent of the Company’s Adjusted Capital and

Reserves. The Directors currently intend that the aggregate borrowings of the Company will be limited to approximately 20 per cent

of the Company’s gross assets immediately following drawdown of any new borrowings. The Directors will, however, retain flexibility

to increase or decrease the level of gearing to take account of changing market circumstances and in pursuit of the Company’s

investment objectives.

Report and Accounts 2023 | 75

Financial Report

19. Net asset value per share

2023 2022

Net assets attributable at the year end £104,171,000 £111,215,000

Equity shares in issue at the year end

(1)

115,781,403 115,881,403

Net asset value per Ordinary/B share 89.97p 95.97p

(1)

Consisting of 85,072,653 Ordinary Shares and 30,708,750 B Shares (2022: 85,172,653 Ordinary Shares and 30,708,750 B Shares), being the number of shares

in issue at the year end.

The Company’s shares may also be traded as units, each unit consisting of three Ordinary shares and one B share. The basic net

asset value per unit as at 31 March 2023 was therefore 359.88p (2022: 383.88p).

The Company’s treasury net asset value per share, incorporating the 16,994,491 Ordinary shares and 1,367,953 B shares held

in treasury at the year end (2022: 16,894,491 Ordinary shares and 1,367,953 B shares), was 89.97p (2022: 95.97p). The

Company’s treasury net asset value per unit at the end of the year was 359.88p (2022: 383.88p). The Company’s current policy

is to only re-sell shares held in treasury at a price not less than the net asset value per share.

20. Changes in liabilities arising from financing activities

2023

£’000

2022

£’000

Opening liabilities from financing activities 7,500 11,000

Cash-flows:

Drawdown of revolving credit facility 12,000 2,000

Repayment of revolving credit facility – (5,500)

Repayment of bank loan (7,500) –

Closing liabilities from financing activities 12,000 7,500

21. Financial instruments

The Company’s financial instruments comprise equity investments, cash balances, receivables and payables that arise directly

from its operations and borrowings. As an investment trust the Company holds a portfolio of financial assets in pursuit of its

investment objective. The Company makes use of borrowings to achieve enhanced returns. The downside risk of borrowings can

be mitigated by raising the level of cash balances held.

The Company may use derivatives for efficient portfolio management from time to time. No derivative financial instruments were

used during the current year or prior year. The Company may also write call options over some investments held in the investment

portfolio. There were no call options written during the current year or prior year.

The fair value of the financial assets and liabilities of the Company at 31 March 2023 is not materially different from their carrying

value in the financial statements.

The Company is exposed to various types of risk that are associated with financial instruments. The most important types are

credit risk, market price risk, liquidity risk, interest rate risk and foreign currency risk.

The Board reviews and agrees policies for managing its risk exposure. These policies are summarised as follows and have

remained unchanged for the year under review.

Credit risk

Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has entered into with

the Company.

The Company’s principal financial assets are bank balances and cash and other receivables, whose carrying amounts in the

Statement of Financial Position represent the Company’s maximum exposure to credit risk in relation to financial assets. The

Company did not have any exposure to any financial assets which were past due or impaired at the current or prior year end.

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76 | CT UK High Income Trust PLC

Financial Report

21. Financial instruments (Continued)

The Company is exposed to potential failure by counterparties to deliver securities for which the Company has paid, or to pay for

securities which the Company has delivered. A list of pre-approved counterparties used in such transactions is maintained and

regularly reviewed by the Manager, and transactions must be settled on a basis of delivery against payment. Broker counterparties

are selected based on a combination of criteria, including credit rating, balance sheet strength and membership of a relevant

regulatory body. Risk relating to unsettled transactions is considered to be small due to the short settlement period involved and

the acceptable quality of the brokers used. The rate of default in the past has been insignificant.

All of the investments of the Company, are held by JPMorgan Chase Bank, the Company’s custodian. Bankruptcy or insolvency

of the custodian may cause the Company’s rights with respect to the securities held by the custodian to be delayed or limited.

The Board monitors the Company’s risk by reviewing the custodian’s internal control reports as described in the Report of the

Audit Committee.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit

ratings, normally rated A or higher, assigned by international credit rating agencies. Bankruptcy or insolvency of such financial

institutions may cause the Company’s ability to access cash placed on deposit to be delayed, limited or lost.

The Company has no significant concentration of credit risk with exposure spread over a number of counterparties and financial

institutions.

Market price risk

The fair value of equity and other financial securities held in the Company’s portfolio fluctuates with changes in market prices.

Prices are themselves affected by movements in currencies and interest rates and by other financial issues, including the

market perception of future risks. Other external events such as protectionism, inflation or deflation, economic recessions and

terrorism could also affect share prices in particular markets. The Company’s strategy for the management of market price risk

is driven by the Company’s investment policy as outlined within the Purpose, Strategy and Business Model on pages 8 and 9

and Principal Policies on pages 29 and 30. The Board sets policies for managing this risk and meets regularly to review full,

timely and relevant information on investment performance and financial results. The management of market price risk is part of

the fund management process and is typical of equity investment. The portfolio is managed with an awareness of the effects of

adverse price movements through detailed and continuing analysis with an objective of maximising overall returns to shareholders.

Investment performance is discussed in more detail in the Manager’s Review and further information on the investment portfolio is

set out in the sections of this report entitled ‘Classification of Investments’ and ‘Investment Portfolio’.

Any changes in market conditions will directly affect the profit or loss reported through the Statement of Comprehensive Income.

A 20 per cent increase in the value of the investment portfolio as at 31 March 2023 would have increased net assets and income

for the year by £22,604,000 (2022: an increase of 20 per cent in the Investment Portfolio would have increased net assets and

income by £22,272,000). A decrease of 20 per cent (2022: 20 per cent) would have had an equal but opposite effect.

The calculations above are based on investment valuations at the respective statement of financial position dates and are not

representative of the year as a whole, nor are they reflective of future market conditions.

Disclosure of the hierarchy of fair value measurements for financial instruments, as required by IFRS 13, is provided in note 11

and in the accounting policies.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in realising assets or otherwise raising funds to meet financial

commitments. The risk of the Company not having sufficient liquidity at any time is not considered by the Board to be significant,

given the liquid nature of the portfolio of investments and the level of cash and cash equivalents ordinarily held. Cash balances

are held with a spread of reputable banks with a credit rating of normally A or higher, usually on overnight deposit. The Manager

reviews liquidity at the time of making each investment decision. The Board reviews liquidity exposure at each meeting.

In certain circumstances, the terms of the Company’s bank facility entitle the lender to demand early repayment and, in such

circumstances, the Company’s ability to maintain dividend levels and the net asset value attributable to equity shareholders could

be adversely affected. Such early repayment may be required on the occurrence of certain events of default which are customary

for facilities of this type. These include events of non payment, breach of other obligations, misrepresentations, insolvency and

insolvency proceedings, illegality and a material adverse change in the financial condition of the Company.

Report and Accounts 2023 | 77

Financial Report

21. Financial instruments (Continued)

The remaining contractual maturities of the financial liabilities at 31 March 2023, based on the earliest date on which payment

can be required, were as follows:

Three

months

or less

£’000

More than

three months

but less than

one year

£’000

More than

one year but

less than

two years

£’000

More than

two years but

less than

five years

£’000

Total

£’000

31 March 2023

Current liabilities

Payables 279 – – – 279

Revolving credit facility 12,000 – – – 12,000

31 March 2022

Current liabilities

Payables 293 – – – 293

Bank loans 48 7,548 – – 7,596

The figures in the above table are on a contractual maturity basis and therefore include interest payments where applicable.

Interest rate risk

Some of the Company’s financial instruments are interest bearing. They are a mix of both fixed and variable rate instruments with

differing maturities. As a consequence, the Company is exposed to interest rate risk due to fluctuations in the prevailing market

rate. The Company’s exposure to floating interest rates gives cashflow interest rate risk and its exposure to fixed interest rates

gives fair value interest rate risk.

Floating rate

When the Company retains cash balances the majority of the cash is held in deposit accounts. The benchmark rate which

determines the interest payments received on cash balances is the bank base rate, which was 4.25 per cent at 31 March 2023

(2022: 0.75 per cent).

Considering the effect on cash balances, an increase of 100 basis points in interest rates would have increased net assets and

income for the year by £23,000 (year to 31 March 2022: £47,000). A decrease of 100 basis points would have had an equal but

opposite effect. The calculations are based on the net cash balances at the respective statement of financial position date and

are not representative of the year as a whole, nor are they reflective of future market conditions.

When the Company draws down amounts under its revolving credit facility, interest is payable based on SONIA (which can vary on a

daily basis) plus a margin. In the prior year, interest was based on LIBOR and was fixed at the time of drawdown.

Fixed rate

At 31 March 2023 and 31 March 2022 the Company’s investment portfolio did not contain any fixed interest or floating rate

interest assets. Details of the Company’s investment portfolio are given in note 11 and in the section of this report entitled

‘Classification of Investments’ and ‘Investment Portfolio’. At 31 March 2023 the Company had no fixed interest liabilities.

£’000

Weighted

average

interest

rate

2023

Average

duration

until

maturity £’000

Weighted

average

interest

rate

2022

Average

duration

until

maturity

Fixed interest liabilities:

Term loan – –% – years 7,500 2.58% 0.5 years

During the year, the £7.5 million term loan which carried a fixed interest rate of 2.58% per annum matured and was repaid on

28 September 2022.

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78 | CT UK High Income Trust PLC

Financial Report

21. Financial instruments (Continued)

Foreign currency risk

It is not the Company’s policy to hedge any overseas currency exposure on equity investments. Foreign currency exposure (which

includes Euro and Swiss Franc denominated equity investments) at 31 March 2023 and 31 March 2022 was as follows:

Investments

£’000

2023

Net

Current

Assets

£’000

Total

£’000

Investments

£’000

2022

Net

Current

Assets

£’000

Total

£’000

Swiss Franc 5,548 91 5,639 3,851 26 3,877

Euro 13,370 99 13,469 14,634 80 14,714

Total 18,918 190 19,108 18,485 106 18,591

Total losses in the year from foreign exchange transactions and balances held in cash were £13,000 (2022 gains: £5,000).

At 31 March 2023, if the value of sterling had weakened against the Euro and Swiss Franc by 10 per cent the impact on the profit

or loss and the net asset value would have been an increase of £2,217,000 (2022: £2,054,000). If the value of sterling had

strengthened against the Euro and Swiss Franc by 10 per cent the effect the impact on the profit or loss and the net asset value

would have been a decrease of £1,814,000 (2022: £1,680,000).

22. Related party and transactions with the Manager

The Directors of the Company are considered a related party. There are no transactions with the Board other than aggregated

remuneration for services as Directors as disclosed in the Directors’ Remuneration Report on pages 48 to 50 and as set out in

note 6 to the financial statements. There are no outstanding balances with the Board at year end.

The beneficial interests of the Directors in the Ordinary shares and B shares of the Company are disclosed on page 50.

Transactions between the Company and Columbia Threadneedle Investment Business Limited are detailed in note 4 on investment

management fees and in note 15 in relation to fees owed to Columbia Threadneedle Investment Business Limited at the

statement of financial position date. The existence of an independent Board of Directors demonstrated that the Company is free to

pursue its own financial and operating policies and therefore under the AIC SORP, the Manager is not considered a related party.

23. Post-balance sheet events

Since 31 March 2023, there are no post balance sheet events which would require adjustment of or disclosure in the financial

statements.

Report and Accounts 2023 | 79

Financial Report

Alternative Investment Fund Managers (‘AIFM’) Directive

In accordance with the AIFM Directive, information in relation to the Company’s leverage and the remuneration of the Company’s AIFM,

Columbia Threadneedle Investment Business Limited, is required to be made available to investors. Detailed regulatory disclosures

including those on the AIFM’s remuneration policy and costs are available on the Company’s website or from Columbia Threadneedle

Investments on request.

The Company’s maximum and average actual leverage levels at 31 March 2023 are shown below:

Leverage exposure

Gross

method

Commitment

method

Maximum limit 260% 260%

Actual 108% 111%

For the purposes of the AIFM Directive, leverage is any method which increases the Company’s exposure, including the borrowing

of cash and the use of derivatives. It is expressed as a percentage of the Company’s exposure to its net asset value and is

calculated on both a gross and commitment method.

Under the gross method, exposure represents the sum of the Company’s positions after deduction of cash balances, without

taking account of any hedging or netting arrangements. Under the commitment method, exposure is calculated without the

deduction of cash balances and after certain hedging and netting positions are offset against each other.

The leverage limits are set by the AIFM and approved by the Board and are in line with the maximum leverage levels permitted in

the Company’s Articles of Association. The AIFM is also required to comply with the gearing parameters set by the Board in relation

to borrowings.

Detailed regulatory disclosures to investors in accordance with the AIFM Directive are contained on the Company’s website under

Key Documents.

AIFMD Disclosures

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80 | CT UK High Income Trust PLC

Notice of Meeting

Notice is hereby given that the sixteenth Annual General

Meeting of CT UK High Income Trust PLC will be held at

Exchange House, Primrose Street, London EC2A 2NY, on

20 July 2023 at 12 noon for the following purposes. To

consider and, if thought fit, pass the following Resolutions,

of which Resolutions 1 to 10 will be proposed as Ordinary

Resolutions and Resolutions 11 to 13 as Special Resolutions:

Ordinary Resolutions

1. That the Annual Report and Financial Statements for the

year to 31 March 2023 be received.

2. That the Directors’ Remuneration Policy be approved.

3. That the Annual Report on Directors’ Remuneration for the

year ended 31 March 2023 be approved.

4. That Helen M Galbraith, who retires annually, be re-elected

as a Director.

5. That Stephen J Mitchell who retires annually, be re-elected

as a Director.

6. That Angus W Pottinger, who was appointed as a Director on

24 November 2022, be elected as a Director.

7. That Andrew K Watkins, who retires annually, be re-elected

as a Director.

8. That Deloitte LLP be re-appointed as Auditor and the

Directors be authorised to determine its remuneration.

9. That the Company’s dividend/capital repayment policy

with regard to quarterly payments as set out in the Annual

Report and Financial Statements be approved.

10. That, in substitution for any existing authority, but without

prejudice to the exercise of any such authority prior to the

date hereof, the Directors of the Company be and they

are hereby generally and unconditionally authorised in

accordance with Section 551 of the Companies Act 2006

(the “Act”) to exercise all the powers of the Company to

allot shares in the Company and to grant rights to subscribe

for or to convert any security into shares in the Company

(“Rights”) provided that such authority shall be limited to

the allotment of shares and the grant of Rights in respect

of shares with an aggregate nominal value of up to £4,253

in respect of Ordinary shares of 0.1 pence each in the

capital of the Company (“Ordinary Shares”) and £1,535

in respect of B shares of 0.1 pence each in the capital of

the Company (“B Shares”), such authority to expire at the

conclusion of the Company’s next Annual General Meeting

or on 30 September 2024, whichever is the earlier, unless

previously revoked, varied or extended by the Company in

a general meeting, save that the Company may at any time

prior to the expiry of this authority make an offer or enter

into an agreement which would or might require shares in

the Company to be allotted or Rights to be granted after the

expiry of such authority and the Directors shall be entitled

to allot shares in the Company or grant Rights in pursuance

of such an offer or agreement as if such authority had

not expired.

Special Resolutions

11. That, subject to the passing of Resolution number 10

above, and in substitution for any existing power but

without prejudice to the exercise of any such power prior

to the date hereof, the Directors of the Company be and

they are hereby generally empowered, pursuant to Section

570 of the Companies Act 2006 (the “Act”), to allot equity

securities (as defined in Section 560 of the Act, provided

that for the purposes of this resolution an allotment of

equity securities shall be deemed not to include the sale of

shares in the Company that immediately before the sale are

held by the Company as treasury shares) for cash pursuant

to the authority given by Resolution number 10 above

as if Section 561(1) of the Act did not apply to any such

allotment of equity securities, provided that this power:

(a) expires at the conclusion of the Company’s next Annual

General Meeting or on 30 September 2024, whichever

is the earlier, save that the Company may, before such

expiry, make an offer or agreement which would or

might require equity securities to be allotted after such

expiry and the Directors may allot equity securities in

pursuance of any such offer or agreement as if the

power conferred hereby had not expired; and

(b) shall be limited to the allotment of equity securities up

to an aggregate nominal value of £4,253 in respect of

Ordinary Shares and £1,535 in respect of B Shares

(being approximately 4.3 per cent of the total nominal

value of the issued share capital of the Company

(including treasury shares), as at 31 May 2023) at a

price of not less than the net asset value per share of

the existing Ordinary Shares (in the case of an allotment

of Ordinary Shares) or B Shares (in the case of an

allotment of B Shares).

Notice of Annual General Meeting

Report and Accounts 2023 | 81

Governance Report Auditor's Report Notice of Meeting Other InformationStrategic ReportOverview Financial Report

Notice of Meeting

12. That, in substitution for any existing authority but without

prejudice to the exercise of any such authority prior to the

date hereof, the Company be and is hereby generally and

unconditionally authorised, pursuant to and in accordance

with Section 701 of the Companies Act 2006 (the “Act”)

to make market purchases (within the meaning of Section

693(4) of the Act) of fully paid Ordinary shares of 0.1 pence

each in the capital of the Company and fully paid B shares of

0.1p each in the capital of the Company (“Ordinary and/or

B Shares”) (either for retention as treasury shares for future

reissue, resale, transfer or cancellation), provided that:

(a) the maximum aggregate number of Ordinary Shares

and B Shares hereby authorised to be purchased is

14.99 per cent of the issued Ordinary Shares and

14.99 per cent of the issued B Shares (excluding

Ordinary Shares and B Shares held in treasury)

immediately prior to the passing of this resolution

(see note 15);

(b) the minimum price (excluding expenses) which may be

paid for an Ordinary Share or B Share is 0.1 pence;

paid for an Ordinary Share or B Share shall not be more

than the higher of:

i. 5 per cent. above the average of the middle market

values (as derived from the Daily Official List of the

London Stock Exchange) of an Ordinary Share or

B Share over the five business days immediately

preceding the date of purchase; and

ii. the higher of the last independent trade and the

highest current independent bid on the London

Stock Exchange; and

(d) unless previously varied, revoked or renewed by

the Company in a general meeting, the authority

hereby conferred shall expire at the conclusion of

the Company’s next Annual General Meeting or on

30 September 2024 whichever is the earlier, save that

the Company may, prior to such expiry, enter into a

contract to purchase Ordinary Shares and/or B Shares

under such authority which will or might be completed

or executed wholly or partly after the expiration of such

authority and may make a purchase of Ordinary Shares

and/or B Shares pursuant to any such contract.

13. That, the Directors of the Company be and they are hereby

empowered pursuant to section 573 of the Companies Act

2006 (as amended) (the “Act”) to sell equity securities

(within the meanings of sections 560(1) and 560(2) of

the Act) wholly for cash as if section 561 of the Act did

not apply to any such sale, provided that this power shall

be limited to the sale of equity securities for cash out of

treasury up to an aggregate nominal amount of £8,507

in respect of Ordinary Shares and £3,070 in respect of

B Shares, representing approximately 8.3 per cent of

the Company’s Ordinary share capital in issue (including

treasury shares) as at the date of the passing of this

resolution and approximately 9.6 per cent of the Company’s

B share capital in issue (including treasury shares) as at

the date of the passing of this resolution and shall expire

on the earlier of 30 September 2024 or at the conclusion

of the Company’s next Annual General Meeting, unless

renewed at a general meeting prior to such time, save

that the Company may before such expiry make offers,

agreements or arrangements which would or might require

equity securities to be allotted after such expiry and so that

the Directors of the Company may allot equity securities in

pursuance of such offers, agreements or arrangements as

if the power conferred hereby had not expired.

By order of the Board

For Columbia Threadneedle Investment Business Limited

Company Secretary

Quartermile 4,

7a Nightingale Way

Edinburgh EH3 9EG

31 May 2023

82 | CT UK High Income Trust PLC

Notice of Meeting

Notes

1. A member entitled to attend and vote at this meeting may appoint

one or more persons as his/her proxy to attend, speak and vote

on his/her behalf at the meeting. A proxy need not be a member

of the Company. If multiple proxies are appointed they must not

be appointed in respect of the same shares. To be effective, the

duly executed enclosed form of proxy, together with any power of

attorney or other authority under which it is signed or a certified

copy thereof, should be lodged at the address shown on the proxy

form not later than 48 hours before the time of the meeting or, in

the case of an adjourned meeting, no later than 48 hours before

the holding of that adjourned meeting (or in the case of a poll taken

subsequent to the date of the meeting or adjourned meeting, no

later than 24 hours before the time appointed for the taking of the

poll). In the calculation of these time periods, no account is taken

of any part of a day that is not a working day. The appointment of

a proxy will not prevent a member from attending the meeting and

voting in person if he/she so wishes. A member present in person

or by proxy shall have one vote on a show of hands and on a poll

every member present in person or by proxy shall have one vote for

every share of which he/she is the holder. Any power of attorney

or any other authority under which this proxy is signed (or a duly

certified copy of such power or authority) must be included with the

proxy form. On a poll each Ordinary shareholder is entitled to one

vote per Ordinary share held and each B shareholder is entitled to

one vote per B share held.

2. CREST members who wish to appoint a proxy or proxies by utilising

the CREST electronic proxy appointment service may do so for

this meeting by following the procedures described in the CREST

Manual and by logging on to www.euroclear.com. CREST personal

members or other CREST sponsored members, and those CREST

members who have appointed a voting service provider(s), should

refer to their CREST sponsor or voting service provider(s), who will

be able to take the appropriate action on their behalf.

3. In order for a proxy appointment or instruction made by means

of CREST to be valid, the appropriate CREST message (a “CREST

Proxy Instruction”) must be properly authenticated in accordance

with Euroclear UK & Ireland Limited’s (“Euroclear”) specifications

and must contain the information required for such instructions, as

described in the CREST Manual. The message, in order to be valid,

must be transmitted so as to be received by the Company’s agent

(ID RA19) by the latest time for receipt of proxy appointments

specified in Note 1 above. For this purpose, the time of receipt will

be taken to be the time (as determined by the timestamp applied

to the message by the CREST Applications Host) from which the

Company’s agent is able to retrieve the message by enquiry to

CREST in the manner prescribed by CREST. After this time, any

change of instructions to proxies appointed through CREST should

be communicated to the appointee through other means.

4. The Company may treat as invalid a CREST Proxy Instruction in the

circumstances set out in Regulation 35(5)(a) of the Uncertificated

Securities Regulations 2001.

5. If you are an institutional investor you may be able to appoint a

proxy electronically via the Proxymity platform, a process which has

been agreed by the Company and approved by the Registrar. For

further information regarding Proxymity, please go to www.proxymity.

io. Your proxy must be lodged by 12 noon on 18 July 2023 in order

to be considered valid. Before you can appoint a proxy via this

process you will need to have agreed to Proxymity’s associated

terms and conditions. It is important that you read these carefully

as you will be bound by them and they will govern the electronic

appointment of your proxy.

6. Shareholders can vote online by logging onto www.sharevote.co.uk.

To use this service shareholders will need their Voting ID, Task ID

and Shareholder Reference Number printed on the accompanying

Form of Proxy. Full details of the procedure are given on the

website. Alternatively, shareholders who have already registered

with Equiniti’s online portfolio service, Shareview, can vote by

logging on to their portfolio at www.shareview.co.uk using your

usual user ID and password. Once logged in simply click “view” on

the “My Investments” page, click on the link to vote, then follow

the on screen instructions.

7. A person to whom this notice is sent who is a person nominated

under section 146 of the Companies Act 2006 to enjoy information

rights (a “Nominated Person”) may, under an agreement between

him/her and the shareholder by whom he/she was nominated,

have a right to be appointed (or to have someone else appointed)

as a proxy for the Annual General Meeting. If a Nominated Person

has no such proxy appointment right or does not wish to exercise

it, he/she may, under any such agreement, have a right to give

instructions to the shareholder as to the exercise of voting rights.

The statements of the rights of members in relation to the

appointment of proxies in Notes 1 and 2 above do not apply to a

Nominated Person. The rights described in those Notes can only be

exercised by registered members of the Company.

8. Pursuant to Regulation 41 of the Uncertificated Securities

Regulations 2001, the Company specifies that only those holders

of shares entered on the Register of Members of the Company

as at 6.30 p.m. on 18 July 2023 or, in the event that the meeting

is adjourned, on the Register of Members as at 6.30 pm on the

day two days (excluding non-working days) prior to any adjourned

meeting, shall be entitled to attend or vote at the meeting in

respect of the number of Shares registered in their names at that

time. Changes to the entries on the Register of Members after

6.30 p.m. on 18 July 2023 or, in the event that the meeting is

adjourned, in the Register of Members as at 6.30 pm on the day

two days prior to any adjourned meeting (excluding non-working

days), shall be disregarded in determining the rights of any person

to attend or vote at the meeting, notwithstanding any provisions in

any enactment, the Articles of Association of the Company or other

instrument to the contrary.

9. As at 31 May 2023 (being the last business day prior to the

publication of this notice) the Company’s issued share capital

consists of 85,072,653 Ordinary Shares carrying one vote each

and 30,708,750 B Shares carrying one vote each. The Company

holds 16,994,491 Ordinary Shares and 1,367,953 B shares in

treasury which do not carry voting rights. Therefore the total voting

rights in the Company as at 31 May 2023 were 115,781,403

votes. Any person holding 3 per cent of the total voting rights in the

Company who appoints a person other than the Chairman as his/

her proxy will need to ensure that both he/she and such third party

complies with their respective disclosure obligations under the

Disclosure Guidance and Transparency Rules.

10. No Director has a contract of service with the Company. The

Directors’ letters of appointment will be available for inspection at

the Company’s registered office during normal business hours on any

weekday (Saturdays, Sundays and public holidays excepted) and for

15 minutes prior to, and during, the Annual General Meeting.

11. Information regarding the Annual General Meeting, including

information required by section 311A of the Companies Act 2006,

is available from ctukhighincome.co.uk.

Report and Accounts 2023 | 83

Notice of Meeting

12. Under section 319A of the Companies Act 2006, the Company

must answer any question relating to the business being dealt with

at the meeting put by a member attending the meeting unless:

(a) answering the question would interfere unduly with the

preparation for the meeting or involve the disclosure of

confidential information;

(b) the answer has already been given on a website in the form of

an answer to a question; or

order of the meeting that the question be answered.

13. The members of the Company may require the Company to publish,

on its website (without payment), a statement (which is also

passed to the Company’s auditor) setting out any matter relating

to the audit of the Company’s accounts including the auditor’s

report and the conduct of the audit. The Company will be required

to do so once it has received such requests from either members

representing at least 5 per cent of the total voting rights of the

Company or at least 100 members who have a relevant right to

vote and hold shares in the Company on which there has been

paid up an average sum per member of at least £100. Such

requests must be made in writing and must state your full name

and address and be sent to Quartermile 4, 7a Nightingale Way,

Edinburgh, EH3 9EG.

14. You may not use any electronic address provided either in this

Notice of Annual General Meeting or any related documents

(including the Form of Proxy) to communicate with the Company for

any purpose other than those expressly stated.

15. Following Resolution 12 becoming effective, the maximum

aggregate number of shares hereby authorised to be purchased

shall be 12,752,300 Ordinary shares and 4,603,200 B shares

(or, if less, 14.99 per cent. of the number of Ordinary shares and

14.99 per cent. of the number of B shares in issue (excluding

treasury shares) immediately prior to the passing of the resolution).

16. Under Section 338 of the Companies Act 2006, a member or

members meeting the qualification criteria set out at Note 18

below, may, subject to certain conditions, require the Company to

circulate to members notice of a resolution which may properly

be moved and is intended to be moved at that meeting. The

conditions are that: (i) the resolution must not, if passed, be

ineffective (whether by reason of inconsistency with any enactment

or the Company’s constitution or otherwise); (ii) the resolution must

not be defamatory of any person, frivolous or vexatious, and (iii)

the request: (a) may be in hard copy form or in electronic form; (b)

must identify the resolution of which notice is to be given by either

setting out the resolution in full or, if supporting a resolution sent

by another member, clearly identifying the resolution which is being

supported; (c) must be authenticated by the person or persons

making it; and (d) must be received by the Company not later than

six weeks before the Meeting to which the requests relate.

17. Under Section 338A of the Companies Act 2006, a member or

members meeting the qualification criteria set out at Note 18

below, may, subject to certain conditions, require the Company to

include in the business to be dealt with at the meeting a matter

(other than a proposed resolution) which may properly be included

in the business (a matter of business). The conditions are that:

(i) the matter of business must not be defamatory of any person,

frivolous or vexatious; and (ii) the request: (a) may be in hard copy

form or in electronic form; (b) must identify the matter of business

by either setting it out in full or, if supporting a statement sent by

another member, clearly identify the matter of business which is

being supported; (c) must be accompanied by a statement setting

out the grounds for the request; (d) must be authenticated by

the person or persons making it; and (e) must be received by the

Company not later than 6 weeks before the Meeting to which the

requests relate.

18. In order to be able to exercise the members’ right to require: (i)

circulation of a resolution to be proposed at the Meeting (see

Note 16); or (ii) a matter of business to be dealt with at the

Meeting (see Note 17), the relevant request must be made by:

(a) a member or members having a right to vote at the Meeting

and holding at least 5% of total voting rights of the Company; or

(b) at least 100 members have a right to vote at the Meeting and

holding, on average, at least £100 of paid up share capital.

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84 | CT UK High Income Trust PLC

Other Information

The Company’s capital structure offers shareholders the

opportunity to receive quarterly returns in the form of either

dividends, capital repayments, or both, to suit their own

particular circumstances.

The Company has two classes of shares: Ordinary shares and

B shares. The rights of each class of shares are identical, save

in respect of the right to participate in dividends and capital

repayments. Irrespective of these rights, the net asset value

attributable to each class of shares is the same.

Only Ordinary shares carry a right to participate in dividends

paid by the Company. B shares are not entitled to dividends

but each B share instead carries the right to receive a capital

repayment at the same time as, and in an amount equal to,

each dividend paid in respect of Ordinary shares. The capital

repayments are paid out of the special capital reserve and

accordingly will only be able to be paid for so long as the

amount of the special capital reserve remains sufficient. If and

when this reserve is exhausted, the Articles of Association

provide that all the Ordinary shares and all the B Shares

automatically convert into Ordinary shares with identical rights.

The tax treatment on distributions received from Ordinary

shares will be different from that on distributions received

from B shares. Dividends paid on the Ordinary shares will

be taxed on receipt in the normal way for dividends. Capital

repayments received on B shares will fall to be taxed in

accordance with the rules relating to the taxation of chargeable

gains (see further information below) for non corporate holders

(including individuals).

It is the Company’s current policy to maintain the ratio of

Ordinary shares to B shares (excluding shares held in Treasury)

within the range 72.5% : 27.5% and 77.5% : 22.5%. The

Board may if it considers it to be in the best interests of the

Company, amend the ratio from time to time. However, the

Board will always be mindful in setting the ratio of any impact

on the level of revenue available for the Ordinary shares.

These two securities can be traded together in the form of a

unit with each unit consisting of three Ordinary shares and

one B share.

Bank Facility

The Company has a £15 million revolving credit facility available

until 28 September 2025. The returns of both the Ordinary

shares and B shares may be geared by this bank facility.

Further information on the B Shares

What is different about the B shares

The B shares are just like any other ordinary share except that,

instead of dividends, B shareholders receive capital repayments,

so B shareholders will receive the same amount of cash on a

quarterly basis as Ordinary shareholders, but when it comes to the

tax on these capital repayments the tax treatment will be different.

So a higher rate taxpayer, for example, will not be liable on

receipt to the additional income tax that would normally be

applicable on receipt of a dividend. This is because the capital

repayment is taxed under UK Capital Gains Tax (‘CGT’) rules

rather than Income Tax rules for non corporate holders (including

individuals). When the B shares are disposed of the capital

repayments received need to be taken into account as part of

the CGT disposal calculation.

A summary of the tax treatment.

The capital repayments paid on the B shares will be taxed for

individuals under CGT rules rather than Income Tax rules.

UK tax is not, in normal circumstances, due on receipt of the

quarterly capital repayments and you do not need to include

them on your tax return. Instead, when you dispose of B

shares, an amount equivalent to the capital repayments you

have received is deducted from the tax base cost as part of the

CGT calculation. This treatment applies because the quarterly

sums are treated as ‘small capital receipts’ under CGT rules;

being either less than 5 per cent of the market value of the

B shareholding at the date of receipt or less than £3,000.

An individual B shareholder’s annual exempt amount for CGT

purposes is not reduced or prejudiced by this treatment of capital

repayments. Non UK resident shareholders will not be subject to

UK tax on capital repayments, although local tax could arise.

This ‘small capital receipt’ treatment will only apply where,

and to the extent that, the holding of B shares from which the

capital return is derived has a positive tax base cost against

which to offset the capital receipt. Where this is not the case,

the receipt of a capital distribution may fall to be treated as a

chargeable gain.

The above is based on an understanding of legislation and HM

Revenue and Customs’ practice at the time of publication. Tax

rates and reliefs depend on the circumstances of the individual

investor, are subject to government legislation and may change

in the future. You should consult your tax adviser on your own

individual tax circumstances.

The Company has a capital structure comprising Ordinary shares and B shares. In addition, the

Company has a bank borrowing facility.

Capital Structure At 31 March 2023

Report and Accounts 2023 | 85

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Other Information

Shareholder Information

Dividends and Capital Repayments

Dividends on Ordinary shares and capital repayments on B

shares are paid quarterly in August, November, February and

May each year. Shareholders who wish to have distributions

paid directly into a bank account rather than by cheque

to their registered address can complete a mandate form

for the purpose. Mandates may be obtained from Equiniti

Limited (see back cover page for contact details) on request.

Where distributions are paid directly into shareholders’ bank

accounts, dividend and capital repayment tax vouchers are sent

directly to shareholders’ registered addresses.

Share Prices and Daily Net Asset Value

The Company’s securities are listed on the London Stock

Exchange. Prices are given daily in the Financial Times and

other newspapers. The net asset value of the Company’s

shares are released to the market daily, on the working day

following the calculation date. They are available, with other

regulatory information through the National Storage Mechanism

at data.fca.org.uk or can be obtained by contacting Columbia

Threadneedle’s Investor Services on 0345 600 3030.

Change of Address

Communications with shareholders are mailed to the address

held on the share register. In the event of a change of address

or other amendment this should be notified to Equiniti Limited,

under the signature of the registered holder.

Data protection

The Company is committed to protecting and respecting the

confidentiality, integrity and security of the personal data it

holds. For information on the processing of personal data,

please see the privacy policy on the Company’s website at

ctukhighincome.co.uk.

Profile of the Company’s Ownership

% of Shares held at 31 March 2023

Columbia Threadneedle Investments Retail Savings Plans (43%)

Individuals and Private Client Stockbrokers (36%)

Institutions (21%)

Warning to shareholders – Boiler Room Scams

Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell shares that turn out to be worthless or non-existent, or to

buy shares at an inflated price in return for an upfront payment.

If you receive unsolicited investment advice or requests:

• Check the Financial Services Register from www.fca.org.uk to see if the person or firm contacting you is authorised by the Financial Conduct Authority (“FCA”)

• Call the FCA on 0800 111 6768 if the firm does not have contact details on the Register or you are told they are out of date

• Search the list of unauthorised firms to avoid at www.fca.org.uk/scams

• Consider that if you buy or sell shares from an unauthorised firm you will not have access to the Financial Ombudsman Service or Financial Services

Compensation Scheme

• Think about getting independent financial and professional advice

If you are approached by fraudsters please tell the FCA by using the share fraud reporting form at www.fca.org.uk/scams where you can find out more about

investment scams. You can also call the FCA Consumer Helpline on 0800 111 6768. If you have already paid money to share fraudsters you should contact

Action Fraud on 0300 123 2040.

86 | CT UK High Income Trust PLC

Other Information

CT Individual Savings Account (ISA)

You can use your ISA allowance to make an annual tax efficient

investment of up to £20,000 for the current tax year with a

lump sum from £100 or regular savings from £25 a month. You

can also transfer any existing ISAs to us whilst maintaining the

taxbenefits.

CT Junior Individual Savings Account (JISA)*

A tax efficient way to invest up to £9,000 per tax year for

a child. Contributions start from £100 lump sum or £25 a

month. JISAs or CTFs with other providers can be transferred to

Columbia Threadneedle Investments.

CT Lifetime Individual Savings Account (LISA)

For those aged 18-39, a LISA could help towards purchasing

your first home or retirement in later life. Invest up to £4,000

for the current tax year and receive a 25% Government bonus

up to £1,000 per year. Invest with a lump sum from £100 or

regular savings from £25 a month.

CT General Investment Account (GIA)

This is a flexible way to invest in our range of Investment

Trusts. There are no maximum contributions, and investments

can be made from £100 lump sum or £25 a month.

CT Junior Investment Account (JIA)

This is a flexible way to save for a child in our range of

Investment Trusts. There are no maximum contributions, and

the plan can easily be set up under bare trust (where the child

is noted as the beneficial owner) or kept in your name if you

wish to retain control over the investment. Investments can be

made from a £100 lump sum or £25 a month per account. You

can also make additional lump sum top-ups at any time from

£100 per account.

CT Child Trust Fund (CTF)*

If your child already has a CTF you can invest up to £9,000 per

birthday year, from £100 lump sum or £25 a month. CTFs with

other providers can be transferred to Columbia Threadneedle

Investments.

*The CTF and JISA accounts are opened by parents in the child’s name

and they have access to the money at age 18. **Calls may be recorded

or monitored for training and quality purposes.

Charges

Annual management charges and other charges apply

according to the type of Savings Plan.

Annual account charge

ISA/LISA: £60+VAT

GIA: £40+VAT

JISA/JIA/CTF: £25+VAT

You can pay the annual charge from your account, or by direct

debit (in addition to any annual subscription limits).

Dealing charges

£12 per fund (reduced to £0 for deals placed through the online

Columbia Threadneedle Investor Portal) for ISA/GIA/LISA/JIA and

JISA. There are no dealing charges on a CTF.

Dealing charges apply when shares are bought or sold but not

on the reinvestment of dividends or the investment of monthly

direct debits. Government stamp duty of 0.5% also applies on the

purchase of shares (where applicable).

The value of investments can go down as well as up and you

may not get back your original investment. Tax benefits depend

on your individual circumstances and tax allowances and rules

may change. Please ensure you have read the full Terms and

Conditions, Privacy Policy and relevant Key Features documents

before investing. For regulatory purposes, please ensure you

have read the Pre-sales Cost & Charges disclosure related to the

product you are applying for, and the relevant Key Information

Documents (KIDs) for the investment trusts you want to invest in.

These can be found at ctinvest.co.uk/documents.

How to Invest

To open a new Columbia Threadneedle Savings Plan, apply online

at ctinvest.co.uk Online applications are not available if you are

transferring an existing Savings Plan with another provider to

Columbia Threadneedle Investments, or if you are applying for a

new Savings Plan in more than one name but paper applications

are available at ctinvest.co.uk/documents or by contacting

Columbia Threadneedle Investments.

New Customers

Call: 0800 136 420** (8.30am – 5.30pm, weekdays)

Email: invest@columbiathreadneedle.com

Existing Plan Holders

Call: 0345 600 3030** (9.00am – 5.00pm, weekdays)

Email: investor.enquiries@columbiathreadneedle.com

By post: Columbia Threadneedle Management Limited, PO Box

11114, Chelmsford, CM99 2DG

You can also invest in the trust through online dealing platforms

for private investors that offer share dealing and ISAs. Companies

include: Barclays Stockbrokers, EQi, Halifax, Hargreaves Lansdown,

HSBC, Interactive Investor, Lloyds Bank, The Share Centre

One of the most convenient ways to invest in CT UK High Income Trust PLC is through one of the Savings Plans run by

Columbia Threadneedle Investments.

How to Invest

To find out more, visit ctinvest.co.uk

0345 600 3030, 9.00am – 5.00pm, weekdays, calls may be recorded or

monitored for training and quality purposes.

Financial promotion

marketing and information purposes by Columbia Threadneedle Management Limited, authorised and regulated in the UK by the Financial Conduct Authority. 291000 (01/23) UK

Report and Accounts 2023 | 87

Assets

at 31 March

£’000s 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Total assets less current liabilities (ex bank loans) 139,498 144,552 144,886 134,528 149,649 129,825 127,605 97,021 126,007 118,715 116,171

Bank loans at fair value* 18,186 17,692 18,103 18,156 18,078 7,500 7,500 7,500 11,000 7,500 12,000

Net assets, debt at fair value 121,312 126,860 126,783 116,372 131,571 122,325 120,105 89,521 115,007 111,215 104,171

* includes interest rate swap, where applicable

Net Asset Value (NAV)*

at 31 March

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

NAV per A/Ordinary share and per B share 97.9p 102.8p 103.6p 96.3p 111.1p 103.7p 102.4p 76.7p 99.3p 96.0p 90.0p

NAV High 98.5p 105.8p 107.5p 107.3p 112.3p 116.3p 115.3p 111.8p 103.9p 107.8p 97.3p

NAV Low 78.9p 93.0p 95.0p 87.3p 92.6p 101.1p 91.1p 66.3p 71.2p 84.4p 79.5p

NAV total return on 100p – 5 years 113.6p

NAV total return on 100p – 10 years 150.2p

* includes debt at fair value

Share Price – A/Ordinary Shares

at 31 March

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Middle market price per share 93.5p 95.0p 100.8p 89.8p 104.0p 96.5p 95.0p 69.5p 91.5p 87.0p 82.0p

Discount to NAV % (4.5)% (7.6)% (2.7)% (6.7)% (6.4)% (7.0)% (7.2)% (9.3)% (7.8)% (9.3)% (8.9)%

Share price High 93.5p 97.5p 101.0p 100.0p 104.5p 108.0p 106.0p 102.0p 92.0p 100.0p 90.0p

Share price Low 76.5p 90.0p 87.5p 84.0p 87.5p 96.0p 86.3p 59.5p 64.0p 79.5p 73.5p

Share price total return on 100p – 5 years 114.1p

Share price total return on 100p – 10 years 151.3p

Share Price – B Shares

at 31 March

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Middle market price per share 94.5p 102.3p 100.8p 91.5p 104.3p 95.8p 95.0p 67.5p 91.5p 88.0p 84.5p

Discount to NAV % (3.5)% (0.5)% (2.7)% (5.0)% (6.1)% (7.7)% (7.2)% (11.9)% (7.8)% (8.3)% (6.1)%

Share price High 94.5p 103.5p 102.3p 102.0p 104.3p 107.0p 107.0p 102.5p 92.0p 106.5p 92.0p

Share price Low 79.0p 90.5p 88.5p 84.5p 86.5p 95.8p 86.0p 58.0p 64.0p 82.0p 79.0p

Share price total return on 100p – 5 years 118.0p

Share price total return on 100p – 10 years 151.3p

Other Information

Ten Year Record

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88 | CT UK High Income Trust PLC

Other Information

Share Price – Units

at 31 March

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Middle market price per share 369.0p 375.0p 402.5p 354.0p 409.5p 397.0p 373.0p 273.0p 365.0p 336.0p 323.0p

Discount to NAV % (5.7)% (8.8)% (2.9)% (8.1)% (7.9)% (4.3)% (8.9)% (11.0)% (8.1)% (12.5)% (10.2)%

Share price High 369.0p 375.0p 402.5p 400.5p 409.5p 425.0p 418.0p 403.0p 365p 398.0p 350.0p

Share price Low 300.0p 358.0p 349.5p 335.0p 336.5p 397.0p 335.0p 234.0p 258p 310.0p 304.0p

Share price total return on 100p – 5 years 105.7p

Share price total return on 100p – 10 years 144.8p

Revenue

For the year ended 31 March

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Available for A/Ordinary shares – £’000s 4,391 4,598 4,848 4,571 4,585 4,764 4,451 4,053 3,020 4,178 4,192

Revenue earnings per share 3.52p 3.73p 3.95p 3.74p 3.82p 4.03p 3.77p 3.46p 2.59p 3.61p 3.62p

Dividends per A/Ordinary share 4.28p 4.37p 4.48p 4.60p 4.72p 4.88p 5.04p 5.21p 5.30p 5.45p 5.51p

Capital repayments per B share 4.28p 4.37p 4.48p 4.60p 4.72p 4.88p 5.04p 5.21p 5.30p 5.45p 5.51p

Performance

(rebased at 100 at 31 March 2013)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

NAV per A/Ordinary share, B share and Unit 100.0 105.0 105.8 98.4 113.5 105.9 104.6 78.3 101.4 98.1 91.9

Middle market price per A/Ordinary share 100.0 101.6 107.8 96.0 111.2 103.2 101.6 74.3 97.9 93.0 87.7

Middle market price per B share 100.0 108.3 106.7 96.8 110.4 101.4 100.5 71.4 96.8 93.1 89.4

Middle market price per Unit 100.0 101.6 109.1 95.9 111.0 107.6 101.1 74.0 98.9 91.1 87.5

Dividends per A/Ordinary share 100.0 102.1 104.7 107.5 110.3 114.0 117.8 121.7 123.7 127.3 128.7

Capital repayments per B share 100.0 102.1 104.7 107.5 110.3 114.0 117.8 121.7 123.7 127.3 128.7

Ongoing Charges

For the year ended 31 March

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Expressed as a percentage of average net assets

– excluding performance fees 1.15% 1.06% 1.05% 1.06% 1.11% 0.91% 0.98% 0.96% 1.04% 0.98% 1.02%

– including performance fees 1.15% 1.51% n/a n/a n/a n/a n/a n/a n/a n/a n/a

Gearing

at 31 March

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Net gearing 10.1% 10.0% 7.9% 9.7% 3.5% 4.4% 4.3% 3.4% 7.2% 0.1% 8.5%

Report and Accounts 2023 | 89

The Company uses the following Alternative Performance Measures (“APMs”):

Discount/premium – the share price of an Investment Trust is derived from buyers and sellers trading their shares on the stock

market. This price is not identical to the net asset value (NAV) per share of the underlying assets less liabilities of the Company.

If the share price is lower than the NAV per share, the shares are trading at a discount. This usually indicates that there are more

sellers of shares than buyers. Shares trading at a price above NAV per share are deemed to be at a premium.

At 31 March 2023 At 31 March 2022

Ordinary

shares B shares Units

Ordinary

shares B shares Units

Net asset value per share (a) 89.97p 89.97p 359.88p 95.97p 95.97p 383.88p

Share price (b) 82.00p 84.50p 323.00p 87.00p 88.00p 336.00p

Discount (c=(b-a)/(a)) (c) -8.9% -6.1% -10.2% -9.3% -8.3% -12.5%

Ongoing charges –all operating costs expected to be incurred in future and that are payable by the Company, expressed as a

proportion of the average net assets of the Company over the reporting year. The costs of buying and selling investments and

derivatives are excluded, as are interest costs, taxation, non recurring costs and the costs of buying back or issuing shares.

Ongoing charges calculation

Page

31 March

2023

£’000

31 March

2022

£’000

Total expenditure 60 1,131 1,262

Less management fee at rate of 0.65% of NAV – (756)

Add management fee at revised rate of 0.60% of NAV (see note 4) – 667

Less revolving credit facility commitment fee 69 (44) (20)

Less non-recurring expenses (21) (16)

Total (a) 1,066 1,137

Average daily net assets (b) 104,494 116,551

Ongoing charges (c = a/b) (c) 1.02% 0.98%

Gearing – represents the excess amount above shareholders‘ funds of total investments, expressed as a percentage of the

shareholders funds. If the amount calculated is negative, this is a ‘net cash’ position and no gearing.

Page

31 March

2023

£’000

31 March

2022

£’000

Investments held at fair value through profit or loss (a) 61 113,018 111,362

Net assets (b) 61 104,171 111,215

Gearing (c = (a/b) – 1)% (c) 8.5% 0.1%

Other Information

Alternative Performance Measures (“APMs’)

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90 | CT UK High Income Trust PLC

Other Information

Total return – the theoretical return to shareholders calculated on a per share basis by adding dividends/capital repayments paid

in the period to the increase or decrease in the Share Price or NAV in the period. The dividends/capital repayments are assumed to

have been re invested in the form of shares or net assets, respectively, on the date on which the shares were quoted ex dividend.

The effect of reinvesting these dividends/capital repayments on the respective ex dividend dates and the share price total returns

and NAV total returns are shown below.

31 March 2023 31 March 2022

Ordinary shares/

B shares Units

Ordinary shares/

B shares Units

NAV per share at start of financial year 95.97p 383.88p 99.25p 397.00p

NAV per share at end of financial year 89.97p 359.88p 95.97p 383.88p

Change in the year -6.3% -6.3% -3.3% -3.3%

Impact of dividend/capital repayment reinvestments

†

+5.9% +5.9% +5.2% +5.2%

NAV total return for the year -0.4% -0.4% +1.9% +1.9%

†

During the year to 31 March 2023 dividends/capital repayments totalling 5.51p (Ordinary shares/B shares) and 22.04p (units) went ex dividend. During the year to

31 March 2022 the equivalent figures were 5.33p (Ordinary shares/B shares) and 21.32p (units).

31 March 2023 31 March 2022

Ordinary

shares B shares Units

Ordinary

shares B shares Units

Share price per share at start of financial year 87.0p 88.0p 336.0p 91.5p 91.5p 365.0p

Share price per share at end of financial year 82.0p 84.5p 323.0p 87.0p 88.0p 336.0p

Change in the year -5.7% -4.0% -3.9% -4.9% -3.8% -7.9%

Impact of dividend/capital repayment reinvestment

†

+6.3% +6.3% +5.8% +5.5% +5.4% +5.3%

Share price total return for the year +0.6% +2.3% +1.9% +0.6% +1.6% -2.6%

†

During the year to 31 March 2023 dividends/capital repayments totalling 5.51p (Ordinary shares/B shares) and 22.04p (units) went ex dividend. During the year to

31 March 2022 the equivalent figures were 5.33p (Ordinary shares/B shares) and 21.32p (units).

Yield – The total annual dividend/capital repayment expressed as a percentage of the year end share price.

31 March 2023 31 March 2022

Ordinary

shares B shares Units

Ordinary

shares B shares Units

Annual dividend/capital repayment (a) 5.51p 5.51p 22.04p 5.45p 5.45p 21.80p

Share price (b) 82.00p 84.50p 323.00p 87.00p 88.00p 336.00p

Yield = (c=a/b) (c) 6.7% 6.5% 6.8% 6.3% 6.2% 6.5%

Report and Accounts 2023 | 91

Other Information

AAF – Audit and Assurance Faculty guidance issued by the

Institute of Chartered Accountants in England and Wales.

AIC – Association of Investment Companies, the trade body for

listed closed-end Investment Companies.

AIFMD – the UK version of the Alternative Investment Fund

Managers Directive (including all implementing and delegated

legislation and as it forms part of UK law following Brexit).

Issued by the European Parliament in 2012 and 2013, the

Directive required that all investment vehicles in the European

Union, including investment trusts, appoint a Depositary and an

Alternative Investment Fund Manager before 22 July 2014. The

Board of Directors of an investment trust, nevertheless, remain

fully responsible for all aspects of the company’s strategy,

operations and compliance with regulations.

Ordinary Shares – a security issued by the Company. The net

asset value attributable to each Ordinary share is equal to the

Net Asset Value of the Company divided by the total number of

Ordinary shares and B shares in issue. Therefore the net asset

value attributable to each of the Ordinary shares and B shares

is the same. The Ordinary shares are entitled to dividends paid

by the Company.

Benchmark – from 5 July 2018 the FTSE All-Share Index is

the benchmark against which the increase or decrease in the

Company’s net asset value is measured. This index represents

the performance of all eligible companies listed on the

London Stock Exchange’s main market, which pass screening

for size and liquidity. Prior to that the benchmark index was

the FTSE All-Share Capped 5% Index. This Index averages

the performance of 98% of the market value of all eligible

companies listed on London Stock Exchange’s main market

and gives an indication of how this market has performed in

any period. Constituents of the Index are capped at 5% of the

total index quarterly to avoid over concentration in any one

stock. As the investments within these indices are not identical

to those of the Company, the indices do not take account of

operating costs and the Company’s strategy does not include

replicating (tracking) these indices, there is likely to be some

level of divergence between the performance of the Company

and the Index.

B Shares – a security issued by the Company. The net asset

value attributable to each B share is equal to the Net Asset

Value of the Company divided by the total number of Ordinary

shares and B shares in issue. Therefore the net asset value

attributable to each of the Ordinary shares and B shares is

the same. The B shares are entitled to capital repayments paid

by the Company. These capital repayments will be paid at the

same time as, and in an amount equal to, each dividend paid

on the Ordinary shares.

Closed-end company – a company, including an investment

trust, with a fixed issued ordinary share capital which is

traded on an exchange at a price not necessarily related to

the net asset value of the company and in which shares can

only be issued or bought back by the company in certain

circumstances. This contrasts with an open ended company

or fund, which has units not traded on an exchange but issued

or bought back from investors at a price directly related to net

asset value.

Cum-dividend – shares are classified as cum-dividend when

the buyer of a security is entitled to receive a dividend that has

been declared, but not paid. Shares which are not cum-dividend

are described as ex-dividend.

Custodian – a specialised financial institution responsible

for safeguarding, worldwide, the listed securities and certain

cash assets of the Company, as well as the income arising

therefrom, through provision of custodial, settlement and

associated services. The Company’s Custodian is JPMorgan

Chase Bank.

Depositary – under AIFMD rules which have applied from July

2014, the Company must appoint a Depositary, whose duties

in respect of investments, cash and similar assets include:

safekeeping; verification of ownership and valuation; and

cash monitoring. Under AIFMD regulations, the depositary has

strict liability for the loss of the Company’s financial assets in

respect of which it has safe keeping duties. The Depositary’s

oversight duties will include but are not limited to oversight

of share buy backs, dividend payments and adherence to

investment limits. The Company’s Depositary is JPMorgan

Europe Limited.

Derivative – a contract between two or more parties, the

value of which fluctuates in accordance with the value of an

underlying security. The contract is usually short-term (for

less than one year). Examples of derivatives are Put and Call

Options, Swap contracts, Futures and Contracts for Difference.

A derivative can be an asset or a liability and is a form of

gearing because the fluctuations in its value are usually greater

than the fluctuations in the underlying security’s value.

Glossary of Terms

Governance Report Auditor's Report Notice of Meeting Other InformationStrategic ReportOverview Financial Report

92 | CT UK High Income Trust PLC

Other Information

Dividend Dates – reference is made in announcements of

dividends to three dates. The “ex dividend” date is the date

up to which the shareholder needs to hold the shares in order

to be entitled to receive the next dividend. As it takes time for

a stock purchase to be recorded on the register, dividends are

actually paid to the holders of shares on the share register on

the “record” date. If a share transfer prior to the ex-dividend

date is not recorded on the register before the record date,

the selling party will need to pass on the benefit or dividend

to the buying party. The “ex-dividend” date is currently the

business day prior to the record date. The “payment” date is

the date that dividends are credited to shareholders’ bank

accounts. This may be several weeks or even months after

the record date.

Gearing – this is the ratio of the borrowings of the Company

to its net assets. Borrowings have a “prior charge” over

the assets of a company, ranking before shareholders in

their entitlement to capital and/or income. They include:

overdrafts and short and long term loans from banks; and

derivative contracts. If the Company has cash assets, these

may be assumed either to net off against borrowings, giving

a “net” or “effective” gearing percentage, or to be used to

buy investments, giving a “gross” or “fully invested” gearing

figure. Where cash assets exceed borrowings, the Company

is described as having “net cash”. The Company’s maximum

permitted level of gearing is set by the Board and is described

within the Strategic Report.

Investment Company (Section 833) – UK company law allows

an investment company to make dividend distributions out of

realised distributable reserves, even in circumstances where

it has made capital losses in any year provided the Company’s

assets remaining after payment of the dividend exceed 150%

of the liabilities. An investment company is defined as investing

its funds in shares, land or other assets with the aim of

spreading investment risk.

Investment Trust taxation status (Section 1158) – UK

corporation tax law allows an investment company (referred

to in tax law as an investment trust) to be exempted from tax

on its profits realised on investment transactions, provided it

complies with certain rules. These are similar to Section 833

company law rules but further require that the Company must

be listed on a regulated stock exchange and that it cannot

retain more than 15% of income received (set out in note 9 to

the financial statements). The Report of the Directors contains

confirmation of the Company’s compliance with this law and its

consequent exemption from taxation on capital gains.

Manager – Columbia Threadneedle Investment Business

Limited (formerly called BMO Investment Business Limited),

which is ultimately owned by Columbia Threadneedle

Investments, the global investment management business of

Ameriprise Financial, Inc., a company incorporated in the United

States. The responsibilities and remuneration of the Manager

are set out in the Purpose, Strategy and Business Model,

Report of the Directors and note 4 to the financial statements.

Market capitalisation – the stock market quoted price of the

Company’s shares, multiplied by the number of shares in issue.

If the Company’s shares trade at a discount to NAV, the market

capitalisation will be lower than the Net asset value.

Net asset value (NAV) – the assets less the liabilities of the

Company, as set out on the Statement of Financial Position, all

valued in accordance with the Company’s Accounting Policies

(see note 1 to the financial statements) and UK-adopted

International Accounting Standards. The net assets correspond

to equity shareholders’ funds, which comprise the share

capital account, share premium, capital redemption reserve,

buy back reserve, special capital reserve and capital and

revenue reserves.

Net asset value (NAV), Debt at par – the Company’s bank

loans are valued in the financial statements at par (the actual

amount borrowed) and this NAV including this number is

referred to as “NAV, Debt at par”.

Non-executive Director – a Director who has a contract for

services, rather than a contract of employment, with the

Company. The Company does not have any executive directors.

Non-executive Directors’ remuneration is described in detail

in the Remuneration Report. The duties of the Directors,

who govern the Company through the auspices of a Board

and Committees of the Board, are set out in the Corporate

Governance Statement.

Ongoing Charges – all operating costs expected to be incurred

in future and that are payable by the Company, expressed as a

proportion of the average net assets of the Company over the

reporting year. The costs of buying and selling investments and

derivatives are excluded, as are interest costs, taxation, non

recurring costs and the costs of buying back or issuing shares.

SORP – Statement of Recommended Practice “Financial

Statements of Investment Trust Companies and Venture Capital

Trusts” issued by the AIC.

Units – a way of holding and trading in the Ordinary shares and

B shares issued by the Company. Each unit consists of three

Ordinary shares and one B share.

Report and Accounts 2023 | 93

Other Information

Directors

A K Watkins (Chairman)

H M Galbraith (nee Driver)

S J Mitchell

A W Pottinger (appointed 24 November 2022)

Alternative Investment Fund Manager (‘AIFM’),

Investment Manager and Company Secretary

Columbia Threadneedle Investment Business Limited

6th Floor, Quartermile 4

7a Nightingale Way

Edinburgh EH3 9EG

Broker

Panmure Gordon (UK) Limited

40 Gracechurch Street

London EC3V 0BT

Auditor

Deloitte LLP, Statutory Auditor

110 Queen Street

Glasgow G1 3BX

Depositary

JPMorgan Europe Limited

25 Bank Street

Canary Wharf

London E14 5JP

Principal Bankers and Custodian

JPMorgan Chase Bank

25 Bank Street

Canary Wharf

London E14 5JP

Bankers

The Royal Bank of Scotland International Limited

440 Strand

London WC2R 0QS

Solicitors

Dickson Minto W.S.

16 Charlotte Square

Edinburgh EH2 4DF

Company Number

SC314671

Website

ctukhighincome.co.uk

Corporate Information

CT UK High Income Trust PLC

Annual Report and Financial Statements

31 March 2023

Registered office:

6th Floor, Quartermile 4, 7a Nightingale Way, Edinburgh EH3 9EG

Tel: 0207 628 8000

ctukhighincome.co.uk

Registrars:

Equiniti

Aspect House

Spencer Road

Lancing

West Sussex BN99 6DA

Registrars’ Shareholder Helpline: 0371 384 2470

Registrars’ Broker Helpline: 0906 559 6025

†

Registrars’ Overseas Helpline: +44(0) 371 384 2470

shareview.co.uk

Lines open 8.30 am to 5.30 pm, Monday to Friday, excluding public holidays in England and Wales.

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To find out more visit columbiathreadneedle.com