FA 2012 analysis: REITs

The changes to the UK REIT rules in FA 2012 are designed to make it easier and cheaper for a property investment group to access the tax exemptions granted by the elective regime. Among other changes, the conditions for entry are relaxed to allow AIM and Plus traded REITs and to introduce relaxations of the diverse ownership condition where there are institutional shareholders, allowing larger stakes to be held by those entities. The entry charge has been abolished, reducing the costs of entry significantly. One new REIT has already been listed under the new rules with more to follow.