The Association of Real Estate Funds (AREF) has called on the UK government to remove barriers preventing widespread adoption of the Property Authorised Investment Funds (PAIF) regime.
The Association of Real Estate Funds (AREF) has called on the UK government to remove barriers preventing widespread adoption of the Property Authorised Investment Funds (PAIF) regime.
The UK funds body said the PAIF regime particularly benefited pension funds, charities and SIPP, ISA and CTF investors, as they did not suffer any tax within the fund.
AREF said launching a PAIF would typically require the holdings of properties from existing investment vehicles to be transferred into the PAIF vehicle. But the potential for a Stamp Duty Land Tax (SDLT) charge to arise on this transfer formed a major barrier to the launch of PAIFs. AREF called for relief from such a charge to be available when launching a PAIF.
Rachel McIsaac, CEO of AREF, said: 'PAIFs are the vehicle of choice for the real estate funds industry in the future as they allow tax and regulatory transparency. We welcome the government’s efforts so far to help with the development of the PAIF regime. Removing the remaining barriers would encourage unregulated funds and offshore funds to join the UK PAIF regime.'
