An Overview of REITs in UK

Top 20 FREQUENT WORDS

reit 95 tax 48 investment 35 estate 30 regime 29 accounting 24 comment 23 trusts 23 business 21 legislation 21 exempt 16 hmrc 14 shares 13 government 12 companies 11 conditions 11 assets 10 significant 10 investors 9 status 9

DOCUMENT KEY POINTS

a of the barker report on ho comparatively short period for consultation to recommended that governm january has been allowed and hm revenue proposals to promote greater customs hmrc has confirmed its intention to institutional investors and the introduce enabling legislation in the finance act market through the introductio with the uk reit regime becoming available in property investment vehicles
the mantra pre perception of the property industry and from a feeling and repeated in its most recent that real estate was really no different from any other made is instructive the gove commercial enterprise and as such should not be committed to ensuring that the i afforded any special privileges that might place it in a reit results in no overall loss o more tax advantageous position

property assets particularly tho the latter has resulted in a significant tax loss to the income profiles to the new reg french tax authorities particularly in relation to a non traditional classes of real investments made by non residents hmrc is properties held by local authoriti naturally keen to avoid such experiences
objectives for uk reit expanding access to a wider retail investors have been frust four policy objectives have been identified that it is source appropriate commercial expected the uk reit wil deliver opportunities

uk real estate investment trusts ensuring fairness for all taxpayers commercial real estate investment opportunities are often only available to investors willing to take significant equity positions
improving flexibility for tenants it is assumed that uk reits may promote more flexible lease arrangements for tenants and assist in further cash in flows to the residential sector

it will not be possible to establish the resident company as a uk rei uk reit as an open ended investment company oeic within the meaning of section of the comment financial services and markets act
the uk will by virtue of this reserve taxing rights over the u comment divine whether this provision f it was unsurprising that a closed ended entity would and spirit of eu legislation

the draft legislation does not for uk reit status to large c prohibit eu companies from becoming uk reits a it the uk reit regime to aim list merely places an obligation on them to be uk tax have increased the appeal of resident
there will of course be a significant increase in compliance the company must not be a c costs in arranging listings on a recognised stock the meaning of section exchange

there are often sever shares with each class affo afford wide access to the shares of a uk reit we management remuneration is believe that a private uk reit albeit one with a such that the latter are issued reasonably wide share ownership would have proved share on meeting specific perfo attractive to a significant number of shareholders
share capital indirectly control or more capital or voting rights of the uk a uk reit must not issue any share capital that does not rank as ordinary share capital

it is more likely that the limit has been to counteract the benefits that may be obtained by nonresidents investing in uk reits and at the same time leveraging the benefits of the respective double tax agreement
loan arrangements management of the uk reit have done everything in their power to ensure that the shareholding limits the uk reit must not be a p were met a breach of this condition would be not a normal commercial loan regarded as a minor breach

comment this would not appear to be too onerous a requirement particularly bearing in mind that there is an obligation for uk listed companies to produce accounts using ias
accounting aspects it will be necessary to prepare accounts in accordance with international accounting standards ias

assets must be valued in acco a a property is a a single property if it is designed fitted accepted accounting practice or equipped for the purpose of being rented and it is accepted accounting practice rented or available for rent as a commercial or valuation between cost basis residential unit separate from any other commercial the cost basis must be used

the operating busin on an ebitda basis whilst the the uk reit would be guided a owner occupied by the uk reit or and the strength of the underlyi by another company whose shares were a stapled to the shares of the uk reit
owner occupier test to transfer their real estate as uk reit and to carry out a a pro the tax exempt business of a uk reit must not such a strategy could enable include any property that in accordance with generally entities to better reflect the val accepted accounting principles be regarded as operation

the high distribution requirement will result in the shares of the uk reit being characterised as an a income stock with the valuations of the shares and their relative attractiveness being measured by reference to the dividend yields arising
uk real estate investment trusts this provision will however be overruled by any specific legislation enforced by the overseas territory in which the uk reit is incorporated

it will be necessary to ensure that at the beginning of an accounting period the value of the assets that relate to the tax exempt business ie the business that is eligible for uk reit purposes comprises at least of the total value of the assets held
the computation of the given the findings of the barke profits automatically includes a full claim for capital housing supply there had bee allowances and a full deduction for any financing obligation would have been pla charges arising

implications on entry in in order for a company to enter the uk reit regime it on entry into the regime the will need to file an application prior to the accounting business carried out by the co period in which the company wishes to benefit from the a deemed disposal of the as uk reit regime
once a company has entered into the uk reit regime it will not be possible to it will continue to be able to benefit from the provisions provided that it is able to meet the relevant qualifying carry forward losses relatin criteria

uk real estate investment trusts treat any receipts accruing after entry into the this approach reflects a relu uk reit regime but relating to any period prior government to enter into a d to uk reit status being achieved as relating to merits of the alternative strateg the tax exempt business

disapplication of the uk re considers that the uk reit tax advantage or if a tax ad whilst the government have in the past expressed obtained for another compa reservations as to the quantum of the debt load in a notice is given the uk reit uk reit there had been a hope that they would have have lost its tax exempt sta let this matter be decided by market forces rather than period specified in the notic specific legislation

implications on cessation of the uk reit regime on cessation of the application of the uk reit regime an accounting period of the company will cease and a new accounting period will be deemed to commence
for capital allowances purposes assets are deemed to transfer at tax written down value and no balancing charge or allowances will arise

entry into the uk reit regime the uk reit will be obliged to tax treatment of uk reit the basic rate of from th certain categories of share the uk reit will be tax exempt in relation to its profits pension funds will be entitl arsing from the tax exempt business
it will however distributions gross without any be subject to tax at the full corporation tax rate in respect of its non uk reit business without the benefit comment of the small companies rate of corporation tax the starting rate or the non corporate distribution rate

key areas of concern include the fact that no single shareholder may directly or indirectly control more than of the shares in the uk reit the need for a full listing and the introduction of an interest cover ratio
whilst it would have been rather churlish to assume that the uk reit legislation would have been drawn up on the basis of a a one size fits all the draft legislation appears to have a more narrower application

together we number over tax advisers accountants lawyers and support staff based in international clients and uk clients doing business overseas benefit from our exclusive mem first global alliance of independent tax firms now including more than tax professional and our membership of the moores rowland international network mri a worldwide asso professional services firms total revenue exceeds
about us chiltern plc was established years ago and is the uk s leading independent tax consultan specialist tax and business services solutions

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DOCUMENT WORD ANALYSIS

Main Category

AlHuda Material\sukuk islamic

KeyWords

reit estate invest tax trust NA account incom NA finance boardwalk manage rental busi pakistan limit leas properties NA distributable

DOCUMENT REFERENCES

Number of Pages

23

Published Date

2006-01-30 13:09:54

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An Overview of REITs in UK

Contents

Top 20 FREQUENT WORDS

DOCUMENT KEY POINTS

DOCUMENT WORD ANALYSIS

Main Category

KeyWords

RELATED DOCUMENTS

DOCUMENT REFERENCES

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Published Date

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