John Challoner and Kristy Cooper explain why the changes to the REIT regime due to be implemented in FA 2012 will provide a boost to the property market.
BackgroundThe real estate investment trust (REIT) regime was introduced by FA 2006 allowing companies with accounting periods beginning on or after 1 January 2007 to enter the regime. Companies which elect to be REITs are not subject to tax on the income profits and gains of their qualifying property rental business. Investors in REITs are treated for tax purposes as if they hold the properties direct so that the distributions which...
