Property Trusts Following last year's consultation by the Government concerning the reform of property investment taxation in the UK, a further discussion paper has been released titled 'UK Real Estate Investment Trusts'.
This consultation recaps on the structure for these investment trusts and the reasons and benefits for introducing them in the UK. The main reasons for reviewing and reforming property investment market taxation is to increase access to smaller investors and benefit the commercial property sector by increasing liquidity and efficiency within the market.
The Government also has hopes that larger institutions will become involved, allowing the increased demand for housing to be met by increased investment. When this further consultation period ends the Government hopes to introduce legislation in the Finance Bill 2006.