Submitted on Monday 06th November 2006
REIT regulations clarified
HM Revenue & Customs has scaled back the reach of tax charges for UK real estate investment trusts (REITs).
A company that holds more than 10% in a REIT will face an additional tax charge on its holding, however HMRC modified its draft regulations so that individuals and pension schemes do not face the additional charge.
Individuals will be charged the basic rate of income tax (22%) or 40% for higher rate taxpayers on payouts from the REIT.
