BECOMING A UK-REIT 14
uk limited partnership
baker trust
uk company
income gains exit 45.0% 20.0% 20.0% 45.0% 20.0% 20.0% 54.51% 54.51% 20.0% 45.0% 20.0% 20.0% 20.0% 20.0% 20.0% 25.0% 25.0% 20.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 25.0% 25.0% 0.0% exit income gains exit income gains
The categories of investor that benefit the most from investing in a UK-REIT are the tax-exempt investor who receives the same tax treatment as investing directly in property, but without the additional cost and risk involved with direct ownership; and the UK taxable investor who realises value by selling shares in a UK-REIT that has retained capital gains that have not been subject to tax.
Notes: In compiling the table, certain assumptions have been made with regard to the tax profile of the investors and the structures they would use to hold their investment in a commercial property fund. 1 Tax rates used incorporate the increased tax rate changes announced, including the corporation tax rate of 25% from April 2023, and the introduction of changes to the taxation of capital gains arising after 5 April 2019 for non-UK based investors. It has been assumed that property gains are distributed but not for the exit scenario. The position for non-domiciled investors is complex.
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