An in-house asset is:

• a loan to, or an investment in, a related party of your fund
• an investment in a related trust of your fund, or
• an asset of your fund that is leased to a related party.

In-house assets can't be more than 5% of the market value of your fund’s assets. If they do exceed this, at the end of a financial year the trustees must prepare a written plan to reduce the market ratio of in-house assets to 5% or below. This plan must be prepared and complied with before the end of the next year of income.

Exceptions include:

• business real property leased between your fund and a related party of your fund, and
• some investments in related non-geared trusts or companies, which comply with strict rules.