Popular investment vehicles in the UK (Unauthorised)

Updated on January 2026

• UK Limited Partnership [Private Fund Limited Partnership]
• UK Exempt Unauthorised Unit Trust (EUUT)
• UK Real Estate Investment Trust (UK REIT)
• Qualifying Asset Holding Company (QAHC)
• Reserved Investor Fund (RIF)

• Limited Partnership

• Unit Trust

• Is an elected tax status for UK tax resident companies (can be elected by companies incorporated in other jurisdictions if tax resident in UK).

• Is an elected tax status for UK tax resident holding companies (can be elected by companies incorporated in other jurisdictions if tax resident in UK).

• Unauthorised co-ownership contractual scheme.

• Tax transparent

• Effectively tax-free at trust level

• Tax exempt status for UK property investment business, subject to meeting REIT conditions. 
• Can have up to 25% of business related to other activities but other activities may be taxable.

• Tax exempt status for ringfenced investment business such as for qualifying shares and non-UK land (not UK land)
• Investors broadly taxed as if they had invested direct
• Conditions apply including for ownership and must have a qualifying investment strategy.

• Transparent for income tax purposes.
• Treated as opaque for UK tax on chargeable gains, but RIF is exempt, with investors being subject to tax on disposals of units in the RIF (subject to their status).

• 5% on direct underlying UK property GAV above GBP 250,000 (with lower rates applied for the portion of GAV below GBP 250,000).

• 0.5%, but in certain circumstances can be nil.

• 0.5% if UK Company. 
• Will depend on country if non-UK (e.g. Jersey).

• 0.5% if UK Company 
• Will depend on country if non-UK (e.g. Jersey)

• No transfer tax on transfers of RIF units.

• No

• No

• Yes. 
• An exemption from listing is available where 70% of direct / indirect ownership is institutional.

• No

• No

• Can be closed or open-ended

• Can be closed or open-ended

• Closed-ended (but buy backs / capital reductions possible)

• Closed-ended (but buy backs possible)

• Can be closed or open-ended

• UK AIFMD or CIS regimes may apply, in which case appointment of an FCA regulated AIFM / operator required (as applicable).
• A PFLP must be a CIS.

• UK AIFMD or CIS regimes may apply, in which case appointment of an FCA regulated AIFM / operator required (as applicable).

• UK AIFMD rules apply if REIT is an AIF, with either the REIT (internal management) or AIFM (external management) regulated by FCA.
  UK or other jurisdiction Prospectus rules apply if “listed”.

• UK AIFMD or CIS regimes may apply, in which case appointment of an FCA regulated AIFM required.

• Must be an AIF and so must have AIFM regulated by the FCA.

• Limited to institutional, high net worth or knowledgeable investors

• Only available to UK tax exempt investors, i.e. pension funds and charities

• No, but for unlisted vehicles, there are specific investor requirements.

• FCA financial promotion rules
• Tax ownership requirements - investors other than good (e.g. institutional and diverse ownership investors) not to exceed 30%

• Must satisfy genuine diversity of ownership condition, or be controlled by certain qualifying institutional investors.

• Tax transparent and highly flexible
• Often combined with other investment vehicles

• Tax efficiency

• Tax exempt status for UK property investment.
• Can be part of a fund. 
• Can have underlying investment vehicles and joint ventures.

• Tax efficiency including for ring fenced business.
• Withholding tax exemptions on dividends and interest

• Tax efficient including on transfer of units in RIF.
• Onshore vehicle which has some similar features to a Jersey / Guernsey Property Unit Trust.

• Illiquid and can be subject to transfer tax.
• No access to AIFMD marketing passport as non-EU AIF.

• Tax exempt investors only

• Range of REIT conditions which must be met to maintain REIT status.

• Entry Specific holding company regime and limitations on activities.

• Conditions must be met regarding asset ownership (in particular regarding UK property ownership) and investors.

• Property, private equity, venture capital, credit and infrastructure funds.
• UK property joint ventures with exempt taxpayers.

• Pooled property for exempt investors

• UK property investment.
  Potential “unlisted” use as a holding vehicle within a fund structure.

• Use as an investment vehicle for qualifying investments.
•  Comparable to Luxembourg asset holding companies (AHCs).

• A new regime as of March 2025, but predicted to be useful for government and local authority pension scheme investment.