28th Apr 2015 14:59
LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd said Tuesday that shareholders approved its conversion to a UK based Real Estate Investment trust status from its existing structure as a London-listed, Guernsey-domiciled investment trust.
As the trust is currently not resident in the UK it doesn't pay UK tax on capital gains, although its property-owning subsidiary companies are required to pay the UK's 20% rate on their income.
It says the conversion will reduce the overall burden of UK taxation and increase its net income and profitability, as UK REIT qualifying assets will be largely exempt from corporation tax in the UK on both rental profits and chargeable gains.
The switch will also improve its liquidity by making it available to a broader investor base, and will improve its ability to competitive when acquiring assets by removing capital gains tax liabilities.
"Against the backdrop of a growing UK economy, lower inflation and low interest rates, and with a strong and diversified portfolio which already offers considerable opportunity to add value, the Company is well positioned for future growth as it continues the successful execution of its investment strategy," said Chairman Lorraine Baldry in a statement.
Shares in Schroder Real Estate Investment Trust are trading down 0.4% at 61.25 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Schroder Real