As a PAIF, all of the fund’s income from property investment is exempt from corporation tax, which would normally be payable by an OEIC at 20%. This makes the fund very efficient for tax purposes and the investor is taxed upon the PAIF assets more or less as if they held those assets directly. This is particularly attractive for those investors holding the fund within tax-advantaged wrappers such as SIPP or ISA.

Although the unit trust feeder fund doesn’t have the same corporation tax exemption enjoyed by the PAIF, it can also be held in a SIPP or ISA.

See the prospectus for more detailed information on taxation within the fund and taxation in the hands of the investor. This can be downloaded from the library.