Tax matters for Pifs

property

investors rather than vehicle itself likely to bear brunt of income tax

Taxation is the key element of the forthcoming Government-designed property investment fund (Pif), according to several responses to the recent consultation paper on the vehicle. Rosalind Rowe of PricewaterhouseCoopers pointed out that while the Government's consultation paper states the investor, rather than the vehicle, should suffer the tax on income, it is not prepared to allow the tax taken by the Exchequer to be reduced. As such, the Government has suggested a conversion charge, at the moment based on it recovering not only the 'lost' tax on future capital gains, but also potentia...