What is an EPUT?

An Exempt Property Unit Trust (EPUT) is an "unregulated collective investment scheme" that is exempt from both UK corporation tax and capital gains tax on the basis that its investors (i.e., the unit holders) are exempt from tax.  An EPUT is a permissible investment for most pension schemes, including SSIPS, SSAS, QNUPs and QROPs. We currently act as the FCA authorised and regulated operator manager to a number of EPUTs which invest in property (both commercial and residential).

Please note: EPUTs are Unregulated Collective Investment Schemes (UCIS) and cannot be promoted to the general public.  They can only be proposed to limited types of investors such as:

  1. Certified high net worth investors,
  2. Sophisticated investors,
  3. Self-certified sophisticated investors, and
  4. Existing investors in UCIS.

EPUTs are not recommended for most people as UCIS by their nature are risky products.  Additionally investors don't have access to the Financial Services Compensation Scheme (FCSC) or the Financial Ombudsman Service if things go wrong.

Before you agree to invest in a UCIs, you must ensure your financial advisor is permitted by the FCA to promote the scheme to you, and must explain why this is appropriate for you.

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What type of investors can benefit from EPUTs:
  • If you are a group of UK based high net worth or sophisticated investors who wish to combine your pension funds to make a specific property transaction (buy to let).
  • If you are a non-UK resident that is a certified high net worth or sophisticated investor, seeking to invest in UK properties -either commercial or residential- for investment purposes.

     

    Investors who qualify may benefit from:
  • Corporation tax exemption. 
  • Capital gains tax exemption.
  • Leverage: EPUTs may borrow a proportion of a property's value, as long as the borrowing is within HMRC's limits.
  • Flexible, tax efficient solutions for property ownership.
  • Enabling smaller SIPPs and SSAS to invest in property.
  • Direct investor control of risk, as the investor can select the properties to invest in.
  • Better creditor protection, compared to a SIPP or SSAS.

Thinking about setting up an EPUT? We are here to help...

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We will help you obtain HMRC approval for your Exempt Unauthorised Unit Trust.  

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We will manage the EPUT, ensuring the annual accounts, audits, and tax returns are completed accurately and in a timely fashion.

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We will issue the share certificates and maintain the EPUT's share register.

Sapphire will establish and manage your EPUT.

EPUTs have a complex set of requirements, which Sapphire is here to help you navigate and assist. We will ensure that the establishment of the Unregulated Collective Investment Scheme is properly done, and will manage it on an ongoing basis. As FCA authorised and regulated operator manager for UCITs, Sapphire is authorised to establish unregulated collective investment schemes, and will call upon tax, VAT, legal specialists when required.

Please note: EPUTs are Unregulated Collective Investment Schemes (UCIS)and cannot be promoted to the general public.  They can only be proposed to limited types of investors such as:

  1. certified high net worth investors,
  2. sophisticated investors,
  3. self-certified sophisticated investors, and
  4. existing investors in UCIS.

EPUTs are not recommended for most people as UCIS by their nature are risky products.  Additionally investors don't have access to the Financial Services Compensation Scheme (FCSC) or the Financial Ombudsman Service if things go wrong.

Before you agree to invest in an Unregulated Collective Investment Scheme, you must ensure your financial advisor is permitted by the FCA to promote the scheme to you, and must explain why this is appropriate for you.

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Our services include the following:
  • Compilation of the documents required for submission to HMRC in order to obtain approval under the Unauthorised Unit Trusts Regulations 2013.
  • Coordination with the banks, lawyers, accountants and auditors on an ongoing basis in order to properly operate and manage the EPUT.
  • Issuance of unit shares and maintenance of the share register.

100+ client testimonials

I was delighted with the service that I received from Boyd and his team at Sapphire. I was anxious to get our EIS Advance Approval as soon as possible so I wanted to make sure the documentation was perfect. Boyd supplied me with all the templates I needed, including a cash-flow forecast template, which was extremely helpful and he was very responsive to all my questions. I felt in very safe hands and this was confirmed when the HMRC approval came through within four weeks of my application.

Sara Madderson

Madderson London

We had been looking into applying for EIS advance assurance and the whole process seemed very daunting. Johnathan from Sapphire Capital explained the whole process to us and took us through it step by step in a very efficient manner. It was extremely seamless and we were delighted to have found them to help.

Ross McDowell

Harty Nutrition Limited

Bondford was time-pressured to secure SEIS/EIS advanced assurance for its prospective investors. Boyd and Johnathan managed to secure that assurance within just 2-weeks and at a cost that was 50% less than our auditors. I would recommend their services.

Henry Vaughan

Bondford

The team at Sapphire really knows their stuff. They helped us through the entire process and the HMRC EIS application was approved with ease. I couldn’t hope for a more competent advisor in terms of SEIS and EIS applications.

Kiattipong Arttachariya

Paragon Partners

Johnathan of Sapphire was excellent in guiding us through the entire process. Although our holding company is based in the Republic of Ireland (in Cork), Johnathan made what is a complex process of applying for EIS advance assurance for a non-UK based company straightforward. I genuinely, could not recommend him enough.

Tony Duggan

Crossflow Payment Solutions Trading Limited (Elite programme member of London Stock Exchange Group)

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