Author: Paul Chases, Senior Associate, Corporate Real Estate, London and Alex Wright, Associate, Corporate Real Estate, London
In an article published in Property Week on 2 March 2017, Paul Chases and Alex Wright of our corporate real estate team discuss the potential benefits for real estate investors of the proposed introduction of Private Fund Limited Partnerships ("PFLP"s), including greater flexibility and administrative costs savings. Following government consultation into modernising UK limited partnership law (previously reported here in August 2015), HM Treasury's recently published draft legislative reform order proposing the PFLP is expected to be brought into law this April.
Although there have been a number of revisions since the initial consultation paper and draft order was published, PFLPs look set to bring a number of advantages to investors currently using or considering the use of a UK limited partnership. The PFLP will retain the features of a UK limited partnership that often make it an attractive investment vehicle for investors/developers, namely tax-transparency with a limited liability for investors. However the PFLP will also benefit from the removal of certain compliance and administrative burdens that often prove a headache for investors. Further details of the potential benefits of PFLPs may be read in our article recently published in Property Week.
We expect PFLPs to be an attractive option for real estate investors/developers. Please do contact us if you wish to discuss registering a limited partnership as a PFLP.
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The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.