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What is this resource?

The Government has made the REIT regime more attractive with the changes to the legislation in recent years. A REIT (investor REIT) can now invest in another REIT (target REIT) without a tax penalty so long as the investor REIT distributes to its shareholders the whole of the rental distribution received from the target REIT. This relaxation will provide a further vehicle for joint ventures with the benefit of liquidity and the additional flexibility of enabling co-investors to exit at different times through sales of shares on the relevant listing market.

Investor REITs are now also regarded as institutional investors which provides further flexibility in connection with the close company requirements (a property group would lose its REIT status if it became close).

We provide a commentary below on the current tax regime for Real Estate Investment Trusts (REITs) in the UK with an explanation of the main tax benefits and key features including the recent changes.

This guide will help you understand...

  • What is a REIT?
  • Tax benefits of a REIT
  • Key features, including recent changes to the regime
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Need further information on this topic?

For further information, please contact Robert Walker, Fiona Gaskell, Tim Jones or your usual PwC advisor.