New Reserved Investor Fund to support public sector projects

The Reserved Investor Fund, or RIF for short, is expected to be available to investors following Royal Asset to the forthcoming Finance Bill 2024.

The RIF legislation is currently moving quickly through the latter stages via the Finance Bill and Government consultation on draft tax regulations, which ended on 14 May 2024. It has received widespread support from industry and constructive engagement with officials.

It is expected to be available to investors following Royal Asset to the forthcoming Finance Bill 2024.

Designed to appeal to a broad range of investors

The RIF is based onshore in the UK – unlike offshore property funds – and it has an effective transparent tax status. This means investors are liable for tax on the income of the fund on an arising basis in accordance with their own circumstances.

The British Property Foundation has praised the RIF as “quick to create and launch and straightforward to operate.”

It is hoped that such simplicity and flexibility will encourage a larger number of smaller asset managers to launch strategies using the fund structure.

Melvill Rodrigues has steered the initiative

As a law firm funds partner, he saw the gap in the UK fund offering, sacrificed his legal career to progress the campaign to plug the gap with the RIF and engaged with HM Treasury, HMRC and the Financial Conduct Authority officials.

Melville Rodrigues, head of real assets advisory at Apex Group and a member of the Association of Real Estate Funds Public Policy Committee: “It has been wonderful for me to lead the industry initiative, working over several years with Government and regulatory officials and the real estate industry. It’s a privilege to have developed a rapport with officials and to have attracted such goodwill, expertise and enthusiasm within industry. The draft RIF tax regulations reflect a pragmatic and robust way forward for Government, the regulator and industry.

“With the RIF legislation being implemented, my passion is for the RIF to attract UK and international institutional capital (and in the process ease the burden on government finances) for regeneration of our town centres, more social and affordable housing and accelerating net zero goals. I’m looking forward to UK fund managers later this year launching RIFs.”

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