THE BLOG

14
Dec

PAIF conversion | Setting Up a PAIF (Property Authorised Investment Fund) | 100% SDLT Relief

The government appear set to introduce a 100% relief from SDLT for the initial transfer of properties into an authorised PAIF or CoACS.

The relief will have a significant impact on the industry, now opening up the possibility of efficiently transitioning any portfolio of UK property to seed a new fund (PAIF or ACS) without SDLT liability (excl Scotland, where the fiscal fissures continue). You can read more about this news here.

North Star Corporate Finance are PAIF experts and advise fund managers on planning, implementing and operating structures such as PAIFs to deliver strategic change – including the launch of new funds for institutional and/or retail investors; restructuring of funds and structuring of fund management entities, strategic exits and incentive structures (such as carry structures).

To get in touch with North Star please call Andrew Månsson-Lowe on 0207 268 3095 or email: andrewmanssonlowe@northstarcorporatefinance.co.uk

11
Dec

HMRC release draft legislation for PAIF and CoACS Seeding Relief | PAIF | ACS | Interim Management | Corporate Finance | Fund Management

HMRC release draft legislation for PAIF and CoACS Seeding Relief

On 9 December 2015 the UK Government published draft legislation regarding the application of Stamp Duty Land Tax (SDLT) to Property Authorised Investment Funds (PAIFs) and Co-ownership Authorised Contractual Schemes (CoACSs), following the recent announcement at the Spending Review and  Autumn Statement 2015. This draft legislation, along with a draft Explanatory Note and a Tax Impact and Information Note, can be viewed here. The legislation will be included in Finance Bill 2016.

The government will now commence a technical consultation on the details of the legislation. This will run until 3 February 2016.

Specifically the government will introduce a 100% relief from SDLT for the initial transfer of properties into an authorised PAIF or CoACS. There will be a defined seeding period of 18 months, a 3 year clawback mechanism and a portfolio test of 100 residential properties and £100 million value or 10 non-residential properties and £100 million value. The government will also make changes to the SDLT treatment of CoACSs, so that an SDLT charge does not arise on transactions in units.

The relief will have a significant impact on the industry, now opening up the possibility of efficiently transitioning any portfolio of UK property to seed a new fund (PAIF or ACS) without SDLT liability (excl Scotland, where the fiscal fissures continue). These changes combined opens up the possibility of an entirely new combination of structures for different profiles of investors – both onshore (UK) and offshore.

North Star Corporate Finance are experts in advising fund managers on planning, implementing and operating structures such as PAIFs. We can deliver real value using our expert deep experience, delivering projects in a co-ordinated manner across all aspects of commercial, financial, tax, legal, regulatory and administrative work packages.

At North Star we work with fund managers to deliver strategic change – including the launch of new funds for institutional and/or retail investors; restructuring of funds and structuring of fund management entities, strategic exits and incentive structures (such as carry structures).

We are specialist interim project resource working with you and engaging with the whole organisation – discussing product strategy with the principals and detailed operational processes with the delivery teams (such as sales & marketing; fund accounting; client services), providing a holistic solution.

For further information on our services or to find out more about these exciting changes to the property fund management industry, please get in touch. Please call Andrew Månsson-Lowe on 0207 268 3095 or email: andrewmanssonlowe@northstarcorporatefinance.co.uk