The government has relaxed the tax rules on Property Authorised Investment Funds (PAIFs) and REITs in a move set to increase the number of these vehicles in the marketplace.
In this week's Finance Bill, HMRC revealed measures to make it easier for funds to convert to the PAIF tax regime. The plans will see the government amend tax regulations to allow investors to exchange their units in a dedicated PAIF feeder fund for units in the PAIF and vice versa, without being subject to capital gains tax. The move follows consultation with various property fund managers, as well as the Association of Real Estate Funds (AREF). HMRC expects to make the changes in late spring or early summer next year, following further informal consultations on its draft proposa...
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