Policy paper: Amendments to the Real Estate Investment Trusts regime

Further to the announcement made in the Edinburgh Reforms launched on 9 December 2022, this measure will make three changes to enhance the REIT regime rules. These changes:

• remove the requirement for a REIT to hold a minimum of three properties where it holds a single commercial property worth £20m or more;
• amend the rule that deems a disposal of property within 3 years of being significantly developed to be outside the property rental business; and
• amend the rules for deduction of tax from property income distributions paid to partnerships.