The following Tax guidance note provides comprehensive and up to date legal information covering:
Produced in partnership with Martin Shah of Simmons & Simmons LLP; material originally written by Charles Goddard of Rosetta Tax LLP
This Practice Note examines the principal anti-avoidance provisions which apply to companies and groups of companies within the UK REIT regime.
These rules amplify the anti-avoidance purpose of the conditions (and tests) for entry to, and ongoing application of, the UK REIT regime. These conditions and tests are considered in more detail in Practice Note: UK REITs—the conditions.
The purpose of the anti-avoidance rules is to prevent companies and groups from obtaining a tax advantage from the use of the UK REIT regime in circumstances where it was not intended to convey the benefit sought or where the benefit sought is greater than the benefit intended to be available.
This is achieved principally by:
imposing tax charges where profits would otherwise be exempt
reducing a deduction or other tax benefit (including, for instance, by reversing the effect of a change in a relevant property's chargeable gains base cost), or
in the last resort, allowing HMRC to issue a termination notice expelling a UK REIT company from the regime
In practice, it is rare, if not unknown, for these rules to be applied in practice, so that the effect of these rules serves principally as:
a deterrent, or
as a limit on the ability of companies
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234