Mipim DISPATCH: Heavy Costs Threaten UK REIT

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CANNES-After months of drafts and revisions, the final wording of legislation that would make REITs a reality in the UK is due out next Wednesday during government’s annual budget statement. And while many parts of the proposed structure mirror the US REIT form, there are provisions not included in stateside structures that could seriously hobble UK REITs’ effectiveness.

As GlobeSt.com reported this morning, much like their US counterparts, UK REITs would get an exemption from corporate tax on rental income or capital gains as long as 95% of profits are directed to shareholders. Industry analysts suggest this could quadruple Britain’s quoted-property sector.