UK Property Fund Changes

Conversion of the threadneedle uk property trust into a property authorised investment fund (paif)

Important information

At the unitholder meeting on 9 April 2015, the proposal to convert the Threadneedle UK Property Trust (the Trust) into the Threadneedle UK Property Authorised Investment Fund (the Threadneedle PAIF), was approved by the requisite majority of investors.

14 May 2016: Conversion completed

At the unitholder meeting on 9 April 2015, the proposal to convert the Threadneedle UK Property Trust (the Trust) into the Threadneedle UK Property Authorised Investment Fund (the Threadneedle PAIF), was approved by the requisite majority of investors.

For details of the fund share classes and respective conversion merger factors, please read our share class map.

3 March 2016: Effective date for conversion announced as 14 May 2016

We have written to unitholders to inform them that the Trust will be converted into the Threadneedle PAIF on 14 May 2016.

Unitholders will have received a letter and detailed Questions & Answers (Q&A) booklet in the post. It is important you read this to understand the potential impact of the conversion on you as an investor.

6 October 2015: Tax exemption announced for PAIF conversions

The Scottish Government has introduced an exemption from the tax changes introduced on 1 April 2015 for the conversion of existing funds into property authorised investment funds. The exemption is effective from 6 October 2015. This means a tax charge will no longer be incurred as a result of converting the Threadneedle UK Property Trust to a PAIF structure, and as such we will progress the conversion. We will write to unitholders when we have a revised effective date for the conversion.

23 April 2015: Postponement of effective date of Conversion

The intention had been for the conversion to take place on 2 May 2015. However, when the tax regime governing the transfer of properties situated in Scotland changed on 1 April 2015, there was unexpectedly no relief from tax for the conversion of existing funds into property authorised investment funds. Due to the fact that the Trust holds commercial property in Scotland it was likely that there would be a significant tax charge if the conversion were to take place on 2 May 2015.

Until there was certainty over the potential taxation consequences, we decided to postpone the conversion and the Trustee has agreed to this postponement.

Why are we making this change?
What are my options / do I need to take any action?
How will my investment be affected by the conversion?
When will the conversion take place?
What is a PAIF?
Why did the conversion not go ahead on 2 May 2015?
Correspondence & literature
Further information