Investment company London and Stamford Property International has converted
to a real estate investment trust, freeing the group from some of its future
corporation tax payments.
The Guernsey-based company which has bankrolled flat developments in Arsenal
Football Club’s former stadium, has moved to the main market of the London Stock
Exchange in order to achieve REIT status.
& Stamford said in a statement to the City: “The key advantage of
electing for group UK-REIT status is that the companies within the enlarged
group will be largely exempt from future corporation tax on both rental profits
and chargeable gains on disposal of investment properties.”
London & Stamford added that the tax savings generated by the move would
allow the REIT conversion charge to be re-paid within two years, subject to full
investment of cash resources.
“The LSP Board believes that the long-term future of the business is best
served by converting to UK-REIT status, becoming a permanent life vehicle to
fully capture the long-term benefits of REIT conversion, and internalising its
management,” London & Stamford said.
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