“Property remains a vital element of an asset-allocated spread investment portfolio. Paifs in principle are a tax-efficient method of collective investment, and as ever with collectives, one has to be very careful to select one in line with investor requirements.”
Carl Melvin, director, Affluent Financial Planning:
“We use the L&G property fund which has just converted to Paif a few weeks ago. I don’t think clients have an issue with this, as the change is to ensure greater tax efficiency and compliance. It is purely a structural issue. So, in short – a non-event.”
Jonothan McColgan, director, Combined Financial Strategies:
“Looking at the reasons for Paif conversions it seems these structures will allow property funds to be finally treated as the income producing investments that they are.
“This means non-tax payers and Isa investors will be allowed to reclaim the first 20 per cent of income tax that they were not allowed to previously. However you need to be careful where only Paif feeder funds are offered by platforms.”
