Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Ignis and M&G to convert property funds into tax efficient Paifs

1 Comment
Ignis and M&G to convert property funds into tax efficient Paifs

Ignis Asset Management is to convert its £940 million UK Property fund into a property authorised investment fund (Paif) at the start of next year.

Ignis is one of several firms looking to convert its property funds to Paifs, to provide a more tax-efficient structure for investors.

However, the process has been protracted due to issues with how platforms manage the income streams of Paifs.

Steven Beveridge, chief operating officer of real estate at Ignis, said: ‘Earlier this year we established a project tasked with converting the Ignis UK Property fund to a Paif structure in 2013. 

‘While most of the operational and tax issues have now been addressed, there are still some points of detail to be resolved. That said, we are confident we will move in line with the majority of our immediate peer group and convert next year.’

The default tax regime in the UK is that non-Paif funds are subject to corporation tax at 20% on taxable income, but Paifs are exempt from this as distributions are ‘streamed’ between rental income, interest and dividends. This means investors can receive gross income via Paifs.

M&G is also currently looking to convert its £2 billion Property Portfolio into a Paif.

The firm is aiming to launch a new M&G Paif Oeic fund and will then merge the Property Portfolio fund into this, subject to shareholder approval.

The group said there will also be a linked feeder fund for investors who are not able to directly invest in the new Paif.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: the opportunities in UK challenger banks

Brewin's Gutteridge: the opportunities in UK challenger banks

In this week's podcast, Brewin Dolphin's Ben Gutteridge and Guy Foster, discuss opportunities in the global financials sector with Aptus' Johnny De La Hey.

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Your Business: Cover Star Club

Profile: how Close Brothers gave power back to the regions

Profile: how Close Brothers gave power back to the regions

Almost a year into the role, Close Brothers Asset Management head of wealth management Andy Cumming has highlighted three keys areas of focus

Wealth Manager on Twitter