New Property Trust
The Government is to bring forward legislation to introduce UK Real Estate Investment Trusts in the Finance Bill 2006.
The new status will be open to public companies listed on a Recognised Stock Exchange. Companies or groups that qualify will not pay corporation tax on qualifying property rental income or qualifying capital gains. There will be a requirement to distribute at least 95% of net taxable profits on rental income to investors, who will then pay tax at their marginal rate.
The Government will announce a conversion charge applying to companies joining the scheme.