UK REITs—the conditions
Produced in partnership with Martin Shah of Simmons & Simmons LLP based on material originally written by Charles Goddard of Rosetta Tax LLP
UK REITs—the conditions

The following Tax practice note produced in partnership with Martin Shah of Simmons & Simmons LLP based on material originally written by Charles Goddard of Rosetta Tax LLP provides comprehensive and up to date legal information covering:

  • UK REITs—the conditions
  • The conditions
  • Company conditions
  • Property rental business conditions
  • Balance of business conditions
  • Distribution condition
  • Additional tests
  • Company conditions
  • Condition A—UK residence
  • Condition B—not an open-ended investment company
  • More...

FORTHCOMING CHANGE: As part of review of the UK funds regime and in particular, a consultation on the tax treatment of asset holding companies, the government consulted until 23 February 2021 on changes to the real estate investment trust (REIT) regime including the:

  1. listing requirement

  2. institutional investors and close company requirement

  3. holders of excessive rights rule, and

  4. balance of business test

The government also consulted until 20 April 2021 on the UK funds regime more generally and sought views on REITs and

  1. the interest cover test and the corporate interest restriction

  2. the three-year development rule

  3. the three property rule, and

  4. the overseas property rules

See: Taxation of asset holding companies in alternative fund structures (second stage consultation), Review of the UK funds regime: a call for input and News Analysis: Promoting UK funds—potential reform of the UK REIT regime.

The regime for real estate investment trusts (REITs or, as they are officially referred to, UK REITs) requires a number of conditions to be satisfied (with relaxation in certain cases) by a company (or group) wishing to enter the regime.

These conditions and certain others must continue to be met while the company (or group) remains within the regime.

This Practice Note considers the conditions which must be met on entry to the regime and while the company (or group) is subject to it.

The UK REIT regime as a whole

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