The proposals for a new UK asset holding company (AHC) regime, to be introduced next year, are welcome and exciting. The tax benefits are generous, with eligible AHCs, broadly, being exempt from gains tax, taxed on a small profit margin on income and able to return capital gains to investors as capital. The position for real estate funds may need to differ slightly, reflecting the need for UK real estate profits and gains to remain taxable, but more flexible rules for REITs are anticipated. To ensure success, i.e. to be internationally competitive, it is vital that the rules are simple to understand and operate.
If you are not a subscriber, subscribe now to read this content.
The proposals for a new UK asset holding company (AHC) regime, to be introduced next year, are welcome and exciting. The tax benefits are generous, with eligible AHCs, broadly, being exempt from gains tax, taxed on a small profit margin on income and able to return capital gains to investors as capital. The position for real estate funds may need to differ slightly, reflecting the need for UK real estate profits and gains to remain taxable, but more flexible rules for REITs are anticipated. To ensure success, i.e. to be internationally competitive, it is vital that the rules are simple to understand and operate.
If you are not a subscriber, subscribe now to read this content.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
