Despite this, only a few PAIFs have been launched, none of which are available to retail investors.
However, the Government has now announced its intention to make a legislative change that will facilitate the creation of PAIFs for the mass retail market.
Julie Patterson, Director at the IMA, said: "The technical change to the PAIF regime [announced today] will ensure that ordinary retail investors will not suffer tax on their investments in property funds held in ISAs or SIPPs. The PAIF regime has for some time enabled institutional investors and wealth management clients to access this tax-efficient form of investing. It is right that it should be available to all types of retail investors.
"Therefore we join the Association of Real Estate Funds (AREF) in calling on the retail fund platforms to make these products available to the mass retail market, as was the original intent."
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