REITS ‘conversion charge’ likely in Budget

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.

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