UBS Triton and ING Lionbrook, Britain's biggest two property-holding partnership funds, have suspended new investments and withdrawals after a government crackdown on stamp duty evasion has led their investors to be charged twice. The Independent
In July the Finance Act introduced measures designed to clamp down on evasion of Stamp Duty Land Tax, but the legislation had the inadvertent effect of hitting property-holding partnerships with a 4% charge on property purchases and if investors put in or took out money.
Peter Macpherson, managing director at ING Investment Management, said: ‘The Treasury has accepted that this was an unintended consequence and has said it will co-operate in getting it sorted out. We hope it will be sorted out by the end of the year.’
The Treasury said it was listening to the funds' views and would announce any changes in the pre-Budget report or the next Budget.
The £1bn ING Lionbrook fund and £2.6bn UBS Triton are structured so they have a number of so-called feeder funds tailored to different types of institutional investors.