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Real Estate Investment Trusts: Finance Bill 2012 - EY - United Kingdom

The Government's proposed changes to the REITs regime are an opportunity to attract significant capital to the UK property sector.


Real Estate Investment Trusts (REITS):
Finance Bill 2012 update

In March 2011, the UK Government announced measures in its Budget to support the development of the UK real estate investment trust (REIT) market.

These changes are a positive step and an opportunity to transform the market and attract significant capital to the UK property sector.

All the measures are expected to be enacted in Finance Bill 2012. This will provide further opportunities to engage with, and influence, Her Majesty’s Treasury (HMT) when draft legislation is released in late Autumn.

The changes are particularly focused on the growth of the UK residential property sector, and the Government has promised to undertake a consultation aimed at removing existing barriers and making REITs more attractive to residential property investors.

The Treasury’s informal consultation into REITs has closed, and it is assessing responses before Finance Bill 2012. EY has responded, but HMT is still willing to hear from interested parties and will consider views, particularly where changes will encourage residential property development in the UK; the key driver behind the changes.

Our Tax Policy and REIT teams can help you assess and influence those opportunities and challenges through a deep knowledge of the REIT market, and access to policy-makers.

UPDATE December 6 2011: The changes to the UK REIT regime  (100K, December 2011) first announced in March’s Budget speech were set out in detail on 6 December 2011 with the publication of draft legislation to be included in Finance Bill 2012.

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