Foreign equivalents to UK-REITs
List of foreign structures that are considered by HM Revenue and Customs to be equivalents to UK-REITs.
Introduction
Where a Property Authorised Investment Fund (Property AIF) owns shares in foreign entities equivalent to UK Real Estate Investment Trusts (UK-REITs), then these shares will be classed as assets of a property investment business. As specified in CTM48814 of the Property AIF guidance, please find below a list of foreign structures that are considered by HM Revenue and Customs (HMRC) to be equivalent to UK-REITs for the purposes of Regulation 69G of the Authorised Investment Funds (Tax) regulations 2006 (SI 2006/964).
Structures
This list is not likely to be exhaustive and will be updated once further foreign structures are identified as meeting the criteria set out in CTM48814.
Structures in List A are considered to meet all the criteria.
Structures in List B may sometimes meet the criteria. For example, if the jurisdiction allows the structure to be open-ended (having variable share capital) or to be closed-ended (having defined share capital) then providing that the rules for the structure met all other criteria those that were closed-ended would be equivalent to UK-REITs.
Lists last updated on 2 June 2006
List A: Foreign entities equivalent to UK-REITs
| Country | Structure |
|---|---|
| Belgium | Société d’investissement à capital fixe en immobilière |
| Germany | G-REIT |
| Israel | REIF |
| Italy | Società d’Intermediazione Immobiliari Quotate |
Where it is considered that a further foreign structure fulfils all the criteria to be treated as equivalent to a UK-REIT, then details can be sent to HMRC:
Attn: Eric McLennan
Authorised Investments Funds Centre
HMRC Local Compliance Eastern England
Concept House
5 Young Street
Sheffield
S1 4LB
The details should show why the structure meets the criteria and provide references to relevant foreign legislation.
List B: Foreign entities that may be equivalent to UK-REITs in some circumstances
The structures below will only qualify where they have defined share capital and the market in shares or units is by way of a listing on a recognised stock exchange. Collective investment schemes (such as Property AIFs) where the investor has a right of redemption do not qualify. In some cases there are also other conditions that must be met as indicated below.
| Country | Structure | Further conditions |
|---|---|---|
| Australia | Listed Property Trust | Unit holders must be entitled to income at year end and consequently trustee not liable to taxation. Income and assets min 75 per cent real property |
| Bulgaria | JSSPIC (Joint Stock Special Purpose Investment Company) US-REIT | Must be a SPIC investing in real estate property |