For some time the Government has been considering the taxation position for Authorised Investment Funds (AIF) investing in property following the development of Real Estate Investment Trusts (UK-REITS). At the 2007 Budget a framework was developed that moves the point of taxation from the AIF to the investor which has the result that investors broadly have the same tax treatment as they would have had if they had owned real property or held UK-REIT shares directly. HM Treasury has now published a Discussion Paper on AIFs investing in property.
The purpose of the Discussion Paper is to:
- provide partial draft Regulations that deliver certain parts of the framework developed at the 2007 Budget; and
- set out how the Government intends to take forward the remaining parts of the framework.
The deadline for comments on the Discussion Paper is 28 September 2007. Following this the Government will publish a complete set of draft Regulations.
View Property authorised investment funds, 18 July 2007