IMA welcomes legislative changes on PAIFs

Legislative changes announced by the government that will encourage the creation of authorised property investment funds (PAIFs) have been welcomed by the Investment Management Association (IMA).

The government has already introduced a tax-efficient regime for authorised property investment funds (PAIFs) to ensure that investors pay the correct amount of tax, while exempting those who do not need to pay tax, including pension funds and individual savings accounts (ISA) holders.

However, the latest changes will help facilitate the creation of more PAIFs, as there are currently only a few, none of which are available to retail customers looking to invest their private wealth.

Julie Patterson, director of the IMA, explained that the changes to the PAIF regime will ensure that retail investors are also exempted from tax on investments in property funds held in ISAs or self-invested personal pensions.

"The PAIF regime has for some time enabled institutional investors and wealth management clients to access this tax-efficient form of investing," she said.

"It is right that it should be available to all types of retail investors."

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