Putting an Eye on IPUTs: An Attractive Proposition for Investment Managers

The Isle of Man Property Unit Trust, commonly referred to as the IPUT, is a tax-efficient and flexible vehicle that enables investors to hold UK real estate with transparency and ease. With property held by trustees on behalf of unitholders, the IPUT aligns perfectly with global regulatory standards while delivering real benefits.

Here are three compelling reasons why the IPUT is a standout choice for investment managers targeting UK property investments.

Legal Alignment

Built on a legal and regulatory framework that closely aligns with those in England and Wales, the IPUT offers familiarity that allows seamless integration with existing UK property holding structures. This alignment not only simplifies legal interpretation and compliance but also enhances investor confidence by ensuring consistency with familiar UK standards.

Tax Efficiency and Streamlined Operations

The IPUT is particularly attractive due to its tax-transparent structure. When established as a ‘Baker Trust’, the income generated by the trust asset (e.g. rental income) flows directly to the unit holders. This approach ensures that income is taxed at unit holder or entity level and is particularly beneficial for exempt investors who can receive income gross of tax and benefit from capital gains tax transparency elections.

Other key tax benefits include:

• Optimised VAT Handling: Registration typically takes five working days, and the IPUT can be grouped with overseas companies for VAT efficiency.
• Stamp Duty Savings: Property can be transferred by selling IPUT units, with no stamp duty charged on unit transfers in the Isle of Man.

Enhance IPUT integrity with Suntera’s expertise

At Suntera Global, our dedicated fund administration team is here to support you throughout the full lifecycle of your fund. We deliver a comprehensive suite of services, including:

• Trustee and administration services
• Company secretarial and investor services
• Governance and compliance frameworks

With a proactive, responsive approach and senior-level expertise, we deliver the operational excellence that allows you to focus on building your long-term fund strategy.

Want to find out more?

Reach out to Alex Stokoe, our Head of Funds on the Isle of Man, who is more than happy to talk through how Suntera can support your needs. With over a decade’s experience working at global fund managers and administrators, and extensive knowledge within the real estate and private equity sector, Alex is happy to guide you through how Suntera can support your needs.

Let’s start with a simple conversation, with someone who knows what to look for.