UK REITs: A New Dawn


UK Real Estate Investment Trusts (UK REITs) were introduced by the Finance Act 2006 to give investors a tax-efficient way of getting exposure to commercial property. This special tax regime came into force on 1 January 2007 and, by February 2007, nine of the UK's largest listed property companies had converted to REIT status. These included, amongst others, Land Securities, British Land, Great Portland Estates and Primary Health Properties. Despite the initial impetus, UK REITs have not managed to attract the interest of smaller property companies and housing associations, principally as a result of certain restrictive qualifying rules and a 2% entry/conversion charge.

However, the UK Treasury has recently issued the results of its informal consultation, indicating that it is poised to abolish the conversion charge for companies joining the UK REIT regime and relax the current listing requirements by allowing REITs to be listed or admitted on the PLUS Market or the Alternative Investment Market (AIM). These and other changes to the UK REIT regime outlined in this article are expected to be included in the Finance Bill 2012.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Amedeo Claris, Bedell | Attorney Advertising

Written by:


Bedell on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.