HMRC scales back REIT rules

HMRC scales back REIT rules

Changes make REITs better for individual investors, tax adviser says after move by HM Revenue & Customs

HM Revenue & Customs has scaled back the reach of tax charges for UK real
estate investment trusts (REITs).

A company that holds more than 10% in a
REIT will face an additional tax charge on
its holding, however HMRC modified its draft regulations so that individuals and
pension schemes do not face the additional charge.

PricewaterhouseCoopers tax partner John Whiting welcomed the move. He said it
was a useful scaling back of the regulation by excluding individuals and pension
scheme from the additional charge.

Individuals will be charged the basic rate of income tax (22%) or 40% for
higher rate taxpayers on payouts from the REIT.

Further reading:

Q&A: REIT here, right now

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

3m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

3m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

5m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

6m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

6m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

9m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

10m Alia Shoaib, Reporter