The UK REIT regime is widely regarded as the government’s flagship property investment regime. Given the growing trend to use ‘onshore’ vehicles for UK property investment and the increase in the corporation tax rate to 25%, tax-exempt REITs continue to be used more and more. Hot on the heels of the changes in the last two Finance Acts, draft provisions for inclusion in Finance Bill 2023/24 contain further proposed changes to the REIT regime with a view to making it more attractive for investment in the UK. These comprise: amendments to the close company condition; a relaxation to the REIT group definition; amendments to the profit to financing cost ratio; a refinement to the ‘single property rule’; an extension to the REIT capital gains exemption on the disposal of a right or interest in a UK property rich company; and amendments to the corporate interest restriction calculation.
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The UK REIT regime is widely regarded as the government’s flagship property investment regime. Given the growing trend to use ‘onshore’ vehicles for UK property investment and the increase in the corporation tax rate to 25%, tax-exempt REITs continue to be used more and more. Hot on the heels of the changes in the last two Finance Acts, draft provisions for inclusion in Finance Bill 2023/24 contain further proposed changes to the REIT regime with a view to making it more attractive for investment in the UK. These comprise: amendments to the close company condition; a relaxation to the REIT group definition; amendments to the profit to financing cost ratio; a refinement to the ‘single property rule’; an extension to the REIT capital gains exemption on the disposal of a right or interest in a UK property rich company; and amendments to the corporate interest restriction calculation.
If you are not a subscriber, subscribe now to read this content.
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