View more on these topics

Criteria relaxed for Reits

by Tony Clements

With launch less than one month away, the legislation on Reits has again been subject to review but, unlike many other elements of the pre-Budget report, this will be broadly welcomed.

HM Revenue and Customs has relaxed the criteria for a newly established company to meet before giving notice that they want to join the regime. The firm no longer needs to be listed on a recognised stock exchange on the day they give notice of intent to join the regime but must be listed when their application goes live. These changes will allow a chunk of the start-up costs to be passed on to investors as they subscribe rather than being borne initially by the “baby” Reit itself.

This will no doubt encourage those of a more entrepreneurial bent to consider Reits as their preferred way of managing the part of their property portfolios and a route to raising new capital and investment, particularly through pension funds.

It is still likely to be the main way the pension investor will gain exposure to the residential market. Pension investors must be careful that their holding does not exceed 10 per cent of the Reit – in and outside the pension (the associated person’s test applies) or they face falling foul of a 70 per cent penalty.

Exempting overseas exchange traded funds from stamp duty reserve tax in line with overseas shares is a sensible move and can only serve to increase the popularity of this cheap and efficient way to gaining exposure to many markets, particularly as they become more innovative in the markets they track.


Restoring the public’s faith in MPPI

Whether you are an IFA, directly authorised firm or an appointed representative, selling mortgage payment protection insurance has certainly raised a few questions over recent months. Negative headlines in the press have done nothing to install confidence in either adviser or consumer when it comes to selling and buying MPPI. Although MPPI itself has not […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm