Q&As

If a UK real estate investment trust (REIT) wishes to convert existing shares into restricted preference shares, what conditions must be met for the company to continue to qualify as a REIT?

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Published on LexisPSL on 07/01/2019

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • If a UK real estate investment trust (REIT) wishes to convert existing shares into restricted preference shares, what conditions must be met for the company to continue to qualify as a REIT?

For a single UK company to be a UK real estate investment trust (REIT) in an accounting period, certain conditions need to be met throughout that accounting period by the company (see Practice Note: UK REITs—the conditions).

One of these conditions (Condition E) is that the company may have:

  1. only one class of ordinary shares in issue, and

  2. no other shares in issue other than non-voting restricted preference shares: see section 528(6)–(7) of the Corporation Tax Act 2010 (CTA 2010)

For these purposes, a restricted preference share is defined in CTA 2010, s 160, and in

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