But when stripped down to the basic entities, we generally come across the following structure: The fund is commonly set up as a Limited Partnership (LP), or overseas equivalent, which owns a series of Property SPVs. Property Funds can have relatively complex structures, normally for risk mitigation and to ensure tax efficiency. This territorial approach requires a unique and modern governance system, combining different levels of government (European, national, regional and local). Together and in their specific fields, these programmes provide a framework for exchanging experience between regional and local bodies in different countries. This is down to a number of reasons, which are not necessarily unique to the UK limited partnership The European Commission (DG Just) has invited feedback on its current Sustainable Corporate Governance Initiative, which is based on the EY Study on directors’ duties and sustainable corporate... Institute of European and Comparative Law, Oxford Intellectual Property Research Centre, Legislative Reform (Private Fund Limited Partnerships) Order 2017, Top 10 posts published in the last 30 days, Top 10 posts published in the last 12 months. For those who subscribe to the “race to the top” thesis of regulatory competition – arguing that the competition among jurisdictions that follows from the freedom for a business to choose its state or country of incorporation, improves corporate structures for the benefit of all – this will be a welcome move forward in the development of corporate law. There are three priorities: A National Strategic Reference Framework (NSRF) establishes the main priorities for spending the EU structural funding a member state receives between 2007 and 2013. The PFLP law also modifies the 1907 Limited Partnerships Act so that the limited partners in a PFLP are not required to make a capital contribution. The first UCITS European directive set out a common set of rules for the cross-border distribution of collective investment schemes via the European Passport. stream

endobj The transfer tax ensures that investors do not circumvent stamp duty land tax by (SDLT) by disposing the underlying real estate via LP units. <> Reforms to UK limited partnership law in 2017, which (effectively) created a new fund vehicle for private fund managers, are clearly designed to build on an already popular structure in the face of increasing international competition. [10] It has been argued that part of this can be explained by the frequent need to co-fund projects, and the needed capacity to prepare applications. That has driven many to use Luxembourg’s partnership structure. Home> Our offices > London > Opinion > Setting up a property investment fund: what’s the structure? Private equity fund … An equivalent parity, in terms of UK tax, should apply between UK and non-UK fund vehicles. Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999. The overall budget for this period is €347bn: €201bn for the European Regional Development Fund, €76bn for the European Social Fund, and €70bn for the Cohesion Fund. Alpine Space), and facilitate coordinated strategic responses to joint challenges, such as flood management, transport and communication corridors, international business and research linkages, urban development and others. If you do not yet have a presence overseas, you will be required to hire this board of directors for the decision making, which could become costly. Through Partnership Contracts agreed with the Commission, Member States will commit to focussing on fewer investment priorities in line with these objectives. The Cohesion Fund contributes to interventions in the field of the environment and trans-European transport networks. Preparation of tax returns and other filings for: fund partnerships, GP entities, carried interest vehicles, co-invest vehicles and other manager/advisor entities.

However, whether the UK’s new vehicle will actually encourage more fund managers to use a British structure for their funds is not clear. Each of the fund vehicles summarised can be utilised for a number of purposes within the overall fund structure, whether as one or more of the vehicles comprising the fund, as co-invest or carry vehicles or as Jersey based investment managers or advisors appointed to the fund. Brexit has put pressure on larger fund managers to use vehicles located in an EU27 country, since the regulatory treatment of UK funds after the UK … This diagram does not provide a definitive illustration of any particular fund structure, any guidance on, or any recommendation in respect of, the structuring of investment funds.
Managers wishing to establish a closed-ended, unlisted, tax-transparent/exempt fund with tradeable units holding UK real estate typically consider the use of non-UK funds. Sam focuses on helping business owners with growth and profitability by providing strategic advice, assisting in its implementation and delivering sound ongoing financial management. Indian Ocean, Caribbean Area or Northern Periphery).

In his previous article, Sam Berry, Partner at Haines Watts London, talks about the importance of pinning down your investment strategy and getting back to basics. Beyond GDP) and organisations propose the creation of a set of alternative indicators that could substitute the GDP and its derivates.[1]. The Structural Funds and the Cohesion Fund are financial tools set up to implement the regional policy of the European Union.

Provision of tax reporting for investors including UK, US, Germany. Generally, an investor that is a UK tax resident is increasing likely to be taxed on any income and gains arising from offshore entities under various anti-avoidance legislation. Want to know more? This was followed by a period where EU member states tried to maximize control, with little systematic project appraisal and a focus on a small number of large projects. Undertakings for Collective Investment in Transferable Securities (UCITS) were first introduced in Europe in 1985.

Provision of carry and coinvest tax reporting information for PE execs including UK, US and Germany. The funding – €55bn in current prices – comes from the ERDF and the ESF. Some groups (e.g.
Even though European Territorial Cooperation Objective is the smallest of the three Cohesion Policy objectives (in terms of budget), it gained a critical importance to address the key challenges of the European Union, particularly with some redefinitions of the Treaty of Lisbon ( entered into force on 1 December 2009), and for contributing to achieve the goals of Europe 2020, the EU's growth strategy. The advantages of these structures for a private equity fund are as follows: 1) Perhaps the biggest advantage for investors is that they are exposed to limited liability. Sam Berry on Magdeburg: European Policy Research Centre. An Operational Programme (OP) sets out a region's priorities for delivering the funds. Apart from funds under the Cohesion policy, there are other funds that have the potential to contribute to the regional development. It is up to the European Parliament and the Council of the European Union to define the tasks, priority objectives and the organisation of the Structural Funds (the Regional Policy framework), through the ordinary legislative procedure and consulting the Economic and Social Committee and the Committee of the Regions (leading to the publication of Regulations). Personal wealth planning - tax efficient property ownership, family investment companies, offshore trusts, etc. This combination significantly increased the distributable income to investors, which made these types of funds extremely appealing. Impact of the location of; fund manager/advisor and the impact on PE houses and key executives. Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999. Also called Regional Policy. The priorities under this objective are human and physical capital, innovation, knowledge society, environment and administrative efficiency. © 2015 - 2020 PwC. Advising on the tax treatment of carried interest for UK and non-UK domiciled individuals. Other jurisdictions offer closed-ended, unlisted, tax-transparent/exempt funds with tradeable units – for instance, unit trusts in Jersey and Guernsey, and the Fonds Commun de Placement in Luxembourg.

Together with the Common Agricultural Policy (CAP), the Structural Funds and the Cohesion Fund make up the great bulk of EU funding, and the majority of total EU spending.

The ERDF supports programmes addressing regional development, economic change, enhanced competitiveness and territorial co-operation throughout the EU. Similarly, other jurisdictions have also implemented or tightened legislation around Dividend Withholding Tax and relevant anti-avoidance legislation on distributions to UK companies and individuals. For the best experience please enable Javascript. is unable to reflect the real socio-economic reality of regions. UK pension funds and other tax-exempt investors generally pay no or little tax on income and capital gains when they own real estate directly, and if committing indirectly they expect equivalence and the fund to be tax-transparent or exempt. Call us on 0207 025 4650 or email london@hwca.com. Property Funds can have relatively complex structures, normally for risk mitigation and to ensure tax efficiency. But when stripped down to the basic entities, we generally come across the following structure: The fund is commonly set up as a Limited Partnership (LP), or overseas equivalent, which owns a series of Property SPVs.

The gap in the UK fund landscape needs to be addressed. Institutional and legal framework This Treaty and the Treaty of European Union establish the legal foundations of the Union's institutions and their relations with the Member States. Setting up a property investment fund: what’s the structure? Funding priorities include modernising economic structures, creating sustainable jobs and economic growth, research and innovation, environmental protection and risk prevention. The member states and their regions manage the programmes. It is extremely important to understand where your investors are domiciled and where the flow of cash invested will end up. LP units are not tradeable, as transfer tax on LP units is levied at up to 5% on the underlying UK (non-residential) real estate.

For example, most funds within the 2004–06 Integrated Regional Operational Programme (IROP), and its 2007–13 successor (ROP), are allocated through largely need-based project-selection mechanisms. IQ Net Thematic Paper, European Policies Research Centre, Glasgow: University of Strathclyde. [4] Adopting an NSRF is a new requirement of the Structural Funds regulations for 2007 to 2013.

The "objectives" were introduced with the Single European Act as a criterion to make the Structural Funds spending more effective as Regional Policy started to be rationalised in a perspective of economic and social cohesion.