IP Newcomer Posted December 7, 2005 Share Posted December 7, 2005 From AccountingWeb PBR - Proposals for UK Real Estate Investment Trusts The idea of tax advantaged Real Estate Investment Trusts (REITs), or collective property investment vehicles was floated some time ago, and the concept moves marginally closer in the Pre Budget Report. An examination of all aspects of UK property by Kate Barker has resulted in a recommendation that the proposal for such vehicles should press ahead. HMRC has announced that the specific tax measures will be announced shortly – before the end of 2005 – but in the meantime, the following rather sketchy information has been published: •The new tax regime for REITs will be available to UK resident companies which are publicly listed on a Recognised Stock Exchange; •Such companies meeting the relevant criteria (which might also apply to entire groups of companies) will not pay any corporation tax on either their qualifying rental income or qualifying chargeable gains, and •Qualifying companies will have to distribute at least 95% of their net taxable rental profits to investors, who will be taxed at their marginal rate of income tax on the income they receive. One warning, however, appears in the announcement of these measures – that the Government is committed to no overall loss of revenue as a result of these measures. Companies wishing to convert to REIT status will be subject to a conversion tax charge. By Rebecca Bennyworth Brief details are in PN04. http://www.hmrc.gov.uk/pbr2005/pn04.htm For those with an Accounting Web subscription it is here: http://www.accountingweb.co.uk/cgi-bin/ite...8&d=448&h=0&f=0 Quote Link to comment Share on other sites More sharing options...
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