Property Investment Fund (PIFs)

  Back in 2005, the UKs Chancellor of the Exchequer, Gordon Brown, unveiled plans to make investment in property more flexible. The onshore Property Investment Fund (PIF) is a tax-free investment in private property so theres no tax levied on rental income or capital gains. Offshore property investment funds were already in operation at the time of the Chancellors announcement. Similar to the US-led REITS (Real Estate Investment Trusts) these are tightly regulated funds, often only open to residents of specific countries, dependent on the origination of the fund. These new Property Investment Funds meant the investor or broker looks at long-term letting agreements and solid tenancy agreements to manage the investment risks.