Bulletin for International Taxation, pp. 259-270, May 2010
13 Pages Posted: 26 Jul 2010 Last revised: 8 Apr 2015
Date Written: May 1, 2010
This second in a series of four articles deals with the Real Estate Investment Trust (REIT) regime in the United Kingdom. A previous article considered the US REIT regime – two subsequent ones examine REITs in Germany and compare the three regimes. This article explores the implementation and use of the REIT regime in the United Kingdom. National REIT regimes provide incentives for indirect investment in real estate by giving certain entities preferential tax treatment. Britain was a comparative latecomer to REITs. This article assesses the UK experience since 2007. The UK REIT regime was received with enthusiasm initially, but it has been less successful than had been hoped. It is thought that the credit crisis of 2008-2009 can take most of the blame for the REIT regime’s lack of success. Structural flaws are also considered.
Keywords: Property Investment, Tax Advantages, Real Estate Investment Trust Regimes, United Kingdom, REITs, Tax Prefereces
JEL Classification: K34, K33
Suggested Citation: Suggested Citation
Fritsch, Nicola and Prebble QC, John and Prebble, Rebecca, Real Estate Investment Trusts in the United Kingdom (May 1, 2010). Bulletin for International Taxation, pp. 259-270, May 2010; Victoria University of Wellington Legal Research Paper No. 12/2013. Available at SSRN: https://ssrn.com/abstract=1640894