SLI to convert UK property fund into PAIF

Standard Life Investments (SLI) is converting its £380m UK Property fund into a property-authorised investment fund (PAIF) next month, to give unitholders gross income without having to pay corporation tax.

A number of fund groups, including M&G Investments and Ignis, converted their property unit trusts into PAIFs earlier this year, to benefit from the favourable tax treatments. PAIF's are open-ended investment companies holding direct property, REITs, or a combination of both. Tax exempt investors investing through ISAs and SIPPs benefit from receiving tax free income from up to three different sources. Barry MacLennan, investment director at SLI, said: "The PAIF structure allows the fund to provide gross distribution of income, which benefits unitholders. More providers should be movi...