REITS 'conversion charge' likely in Budget
Charge for property companies wanting to change legal status
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.