This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Savings and Investment Manual

Collective investment schemes: unauthorised unit trusts: enterprise zone schemes: introduction

Enterprise Zone Property schemes

The exclusion of Enterprise Zone Property (EZPUT) schemes from the income tax definition of unit trust schemes means that

  • the investor rather than the trustee is entitled to the tax reliefs on his share of the expenditure on property in enterprise zones (the investor is also responsible for any balancing charges)
  • the investor is liable on his share of the scheme income which may be distributed gross.

Only those schemes which meet certain criteria are excluded from the income tax treatment of unit trusts. Those criteria include provision for entering into arrangements under which the entitlement to capital allowances in respect of industrial buildings, balancing charges, income etc of each investor is agreed centrally. Schemes that do not meet the criteria are dealt with in the Collective Investment Schemes Centre in Sheffield along with other unauthorised unit trusts.