Budget: Cover charge to join Reit party

The charge is to be paid alongside any corporation tax in the first accounting period the regime applies although it can be spread across the first four years of operation in instalments of 0.5%, 0.53%, 0.56% and 0.6%. The Reits will be exempt from corporation tax on qualifying rental income and disposals of investment properties, although profits and gains on other activities will be subject to the tax. HMRC Budget Note 03 which identifies the charge also outlines the proposals that Reits listed on a “recognised stock exchange” must hold 75% of assets in investment property, and derive a...