By: Rachel Krol
Clarkslegal LLP (Reading, England)
The UK Real Estate Investment Trust (REIT) Regime started on 1 January 2007 and we have previously posted a paper on the workings of REITs and their benefits for various investors.
Broadly, the aim of a REIT is to provide returns to investors that mirror returns that an investor would expect if it owned the property directly. This is achieved through tax transparency – the REIT does not pay corporation tax on its rental income or capital gains but instead passes these tax liabilities onto the investor who pays tax on the proceeds from the REITs.
A great many listed property companies were expected to convert to REIT status following the introduction of the regime in the UK on 1 January 2007 and among those that have done so are Big Yellow, British Land, Capital Shopping Centres Group, Derwent London, Great Portland Estates, Hammerson, Land Securities, SEGRO and Shaftesbury. As at December 2011, there were 24 UK REITs. Click here to read entire article.
