Hundreds of thousands of people in ailing property funds could receive a welcome boost under new rules that will scrap an onerous tax on investments. Sunday Times
The move will benefit those who hold property funds through Isas, pensions and child trusts funds.
Although these schemes are supposed to be tax free, investors are currently hit by a 20% charge on the rental income the property fund receives, acting as a drag on returns.
From April, the funds, which include some of the biggest investment schemes – the £2.6bn Norwich Property Trust and the £1.5bn New Star UK Property unit trust – will be granted the means to allow investors to claim this money back.
Rose-tinted specs fail to offer hope
Rental income makes up a large proportion of the returns, and has become even more important as the commercial property market has slowed.