“Stamp duty is often a barrier to establishing vehicles for collective investment in real estate. The re-introduction of seeding relief* would remove that barrier and significantly encourage the use of vehicles, such as PAIFS and contractual schemes, which have to date been relatively overlooked as real estate fund vehicles. This will benefit those wishing to establish real estate funds and ultimately investors in such funds.
Such a relief was introduced for unit trust schemes before its abolition three years later. This is a much needed consultation and will be welcomed by the real estate industry as a whole.”
* Seeding Relief is the name given to relief for the transfer of property to newly-established fund vehicles.
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