Threadneedle to convert £1bn property fund into PAIF

Threadneedle is to push ahead with plans to convert its UK Property Trust to a more tax-efficient structure.

The fund house has proposed converting its £970m unit trust into a property authorised investment fund (PAIF), in keeping with moves seen across the industry in recent years. The PAIF structure means tax-exempt investors can receive distributions gross of tax instead of net, providing an uplift of up to 25% in income returns. Unitholders will vote on the proposals on 9 April, with conversion scheduled to take place a month later. "Threadneedle is planning to convert the Threadneedle UK Property Unit Trust in to a PAIF and is currently consulting unitholders. If approved, the conver...