Chancellor Gordon Brown has used his pre-budget statement to announce legislation on Real Estate Investment Trusts.
The Conservatives called on Mr.Brown last month to introduce Reits to ensure the UK is not left behind other countries. Industry speculation had suggestsed the Chancellor may have left Reits out of his pre-budget statement because of concerns over loss of tax revenues.
Mr.Brown said: “To widen the number of investors in the residential and commercial property markets, we will this month publish legislation to set up in Britain Real Estate Investment Trusts that will increase the funding of new property developments.”
Ernst & Young real estate tax expert Peter Beckett says: “The promise of legislation to bring in Reits is very good news, after a period of hesitation. I hope the rules will be simple and clear enough to attract the private investment the Chancellor said he wanted in this area.”