Industry leaders are predicting that property companies wanting to become
real estate investment trusts (REITS) will have to pay a conversion charge based
on how much capital gains tax they owe.
Details of the conversion charge, which could be a key issue in decided
whether or not companies take on the new tax-efficient legal status, will be
announced in next week’s Budget, the FT reported.
REITS are due to be available in the UK from January 2007.