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First Sipps, Now Reits


Guest muttley

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HOLA441
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HOLA444

Didnt know much about a REIT tbh but after looking at it. It is scandelous!!!

They said that Thatcherism was 'The Rich Get Richer, nad the poor get poorer' but this government are WORSE!!!!

Explaination of what a REIT is....

What is a Reit?

(Filed: 22/05/2006)

A Real Estate Investment Trust (Reit) is a company that manages a portfolio of real estate to earn profits for shareholders.

After paying a conversion fee, a Reit escapes corporation tax. It must pay out 90pc of its property income to shareholders.

In the Budget, Chancellor Gordon Brown outlined a system for UK Reits in which property companies can exist while at the same time boosting returns for private investors.

A survey earlier this year estimated at least 50pc of the quoted property sector could turn into Reits.

So in other words.... Everyone who owns property can AVOID public taxes and share it out with all their RICH friends.. TAX FREE!!! No wonder 50% of property companies wanted in!!!

Crash Gordon needs a good f*cking kick in the knackers!!!

TB

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HOLA445
Guest muttley

Good news for FTB's & small landlords (and potential small landlords) as well.

Are you talking about yourself, TTRTR?

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HOLA446
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HOLA447

Didnt know much about a REIT tbh but after looking at it. It is scandelous!!!

They said that Thatcherism was 'The Rich Get Richer, nad the poor get poorer' but this government are WORSE!!!!

Explaination of what a REIT is....

So in other words.... Everyone who owns property can AVOID public taxes and share it out with all their RICH friends.. TAX FREE!!! No wonder 50% of property companies wanted in!!!

Crash Gordon needs a good f*cking kick in the knackers!!!

TB

From what I understand [though could be wrong] only publicly listed PLCs could convert to REITs, not a small landlord who turns from self-employed to a limited company

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I think the idea was to make it tax neutral for an individual to own property or own shares in a REIT. By pooling the ownership of many properties in one REIT and then spreading ownership through shares an obvious risk diversification has taken place.

I.e. the REIT pays no corporation tax, but the shareholder pays income tax on any distribution and capital gains on any disposal...

Of course if the shareholder is non UK tax resident then that is a different matter presumably they will have to register their UK source income etc....

In totality the REIT scheme was originally conceived as a way to create large, stable pools of rentable housing. As they would presumably be run on commercial lines they would be inherently more efficient than the socialist housing schemes provided by government.

A benevolant reform that could have resulted in increased supply of quality rentable property has been neutered.

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