IA unveils tax efficient fund structure for charitable investments

Full FCA regulation

The Investment Association (IA) has announced the introduction of Charity Authorised Investment Funds (CAIFs) to provide charities with tax breaks and full FCA regulation on their investments.

According to the IA, the new fund structure could save charities up to £12m a year in VAT and offer the advanced protection afforded by an FCA authorised fund. Developed alongside the Charity Investors Group and the Charity Law Association, the products will continue to offer the same benefits as the existing unauthorised charity fund structure - the Common Investment Fund - which enables investors to smooth income levels over multiple years. However, the structure will now provide funds with the tax benefits available to charities while benefitting from the management-fee VAT exempti...