Reits granted tax incentive

Kasmira Jefford
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THE GOVERNMENT has confirmed it is to introduce new legislation allowing real estate investment trusts (Reits) to invest tax-efficiently in each other.

The announcement, made alongside the Autumn Statement yesterday, was welcomed by the industry who said giving Reits the same tax freedom as investing in physical buildings would boost investment into the property sector.

Property giants like Hammerson and British Land have converted to the Reit model since it was introduced in 2006. It allows firms to escape corporation tax in return for paying out 90 per cent of its property income to shareholders.