How to model a Property Authorised Investment Fund (PAIF)

We don't have a specific investment type to model PAIFs in Voyant at present. If your client doesn't intend to liquidate their PAIF in part or invest more into the fund over the course of the plan, you could model this as a property on the Property Assets screen. 

Be sure to select a property Type other than primary residence such as Rental Property or Business Property. 

Set the Market Value field to the current valuation of the PAIF and Effective Purchase Value to the amount invested in the PAIF to date. The Effective Purchase Value will set the current cost basis on the investment for purposes of calculating future CGT. 

Expand Advanced Settings > Incomes and add an income (rental income) on the property/investment. Be sure to click the Add button. If you already have the rental income  entered in the plan as an Other Income, select it in the drop-down list on this panel and link it to the property/investment. 

The result will be an investment that will be subject to CGT when sold. Also, an annual income will be generated, which will be taxed annually as rental income - i.e. it will not be subject to NI withholdings.  When/if the investment is liquidated, the income will cease and the gains on the property/investment will be subject to CGT. 

From a taxation perspective, an unwrapped investment with a growth rate (capital gains) and an interest yield (annual income) would provide the same; however, the interest (in this case the rental income from the PAIF) could only be set as a percentage of the fund's annual balance, which would grow with the overall value of the fund.