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.