THE BLOG

11
Feb

Property Authorised Investment Fund (PAIF) Conversion | 5 Reasons to convert

What are the five biggest reasons to convert an existing property fund to a property Authorised Investment Fund (PAIF)?

At North Star Corporate Finance we have unique insight and understanding of the PAIF election and the reasons for doing so (including how the PAIFs should operate).  We also have direct experience in the terms, process and conditions for the launch or conversion of existing property funds into a PAIF.

We understand the challenges and rationale commercially, operationally, legally and from a regulatory perspective.

North Star will work alongside your existing team to deliver the project efficiently and ensure the best outcomes both for the fund management and for shareholders.

In our opinion the top five reasons to consider converting to a PAIF are:

1) Tax efficiency – notably no tax on capital gains or income arising. ISA/SIPP eligibility.
2) Corporate Governance – best in class with FCA authorisation.
3) Reduced administration for UK tax exempt investors. No cashflow issues of seeking recovery of tax from HMRC.
4) Lower operating costs versus offshore structures with associated enhanced TER competitive advantage.
5) AIFMD compliance