Enterprise Inns discusses REITs with HMRC

Enterprise Inns, the owner of
7,500 pubs, is in talks with HM Revenue &
over the possibility of converting to a
Real Estate
Investment Trust (REIT)
without having to split the business in two.

According to reports, the company is hoping the entire group can convert to a
more tax efficient REIT.

To do so would require the company to distribute 90% of profits to
shareholders and it must generate 75% of income from rent.

Discussions with HMRC are focusing on what the definition of rent ‘income’

According to some analysts, if beer sales to tenants are allowed to be
interpreted as a form of rental income, REIT conversion is possible.

Further reading:

HMRC scales back REIT rules

KPMG publishes first UK REITS guide

Q&A: REIT here, right now

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