Real Estate Investment Trusts Draft Legislation

The Government announced at the Pre-Budget Rerport that it would legislate in the Finance Bill 2009 to amend the legislation dealing with Real Estate Investment Trusts. The Finance Bill 2009 gives a power to make Regulations. The Regulations concern Real Estate Investment Trusts and the exclusion of groups using artificial arrangements to meet the conditions of the Real Estate Investment Trust regime so that the original objectives of the scheme are maintained.

The draft Statutory Instrument (PDF 35K) and explanatory note relating to prescribed arrangements for Real Estate Investment Trusts is released today.

In addition draft regulations have been prepared amending Schedule 16 of Finance Act 2006 which concerns the types of property allowed within the Real Estate Investment Trust regime. These draft regulations and explanatory note (PDF 26K) are also released today.

HM Revenue & Customs would be grateful for any comments on these draft statutory instruments by 22 May 2009 Please contact Tony Linehan on 020 7147 0527. Alternatively contact by email or you can write to the following address:

CT&VAT
Trading and Property Income Team
3C/17, 100 Parliament Street
London
SW1A 2BQ