A timely comment from my colleague Mark Slade on the commercial benefits of the UK REIT regime (see here).
Legislation published on 7 November 2018 confirmed the proposed approach to extending CGT to non-resident investors in UK property, from April 2019.
In general terms, the legislation seeks to achieve a level playing field for UK based collective property funds (i.e. REITs) and their non-UK equivalents (e.g. JPUTs). Taxable non-UK investors in both will be subject to UK CGT, regardless of the size of their holding (i.e. the 25% de minimis threshold which applies to investors in non-collective vehicles will not apply).
This parity of treatment means REITS remain alive and well as an effective vehicle for collective investment in property, from a tax and non-tax perspective.
Further information can be found in found in the Macfarlanes Guide to UK REITs.
Real Estate Investment Trusts (REITs) may be a viable alternative to open-ended funds holding illiquid real estate for those operators and investors who are concerned, respectively, about runs on assets and dealing suspensions.