PAIFs tax will be on par with REITS - Treasury

The discussion paper, published today, proposes that PAIFs should receive the same tax treatment as REITS and would allow pension funds and charities, which do not normally pay tax, to invest in PAIFs without suffering tax. If the proposals are adopted, current PAIFs will need to convert to OEICs to take advantage of tax relief. The Treasury has also committed to preventing funds from paying Stamp Duty Land Tax, which they would normally incur when converting. Commenting on the discussion paper, Julie Patterson, director of regulation, operation and taxation at the IMA, says: “We welcome...