Sucessful implementation of a new regulatory and tax regime governing Real Estate Investment Trusts (REITs) in the UK will depend on the government writing in additional flexibility and transparency into the rules, says Legal & General.
The provider identifies a number of specific points it believes must be addressed through the current Treasury consultation process in order to make the UK the 20th country to adopt REIT legislation. These include: tax treatment of Property Investment Funds – the name currently used by government to describe REITs; the issue of conversion tax, applied when property companies convert to REIT status; freedom for funds to choose the breadth as well as depth of investments in any particular property sector; and whether PIFs should be able to operate as unlisted vehicles. Without addressin...
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