Finance Act 2009 Explanatory Notes


1.Section 66 and Schedule 34 amend provisions in Part 4 of the Finance Act (FA) 2006 relating to Real Estate Investment Trusts. The following areas are covered in the Schedule:

  • a new measure to stop exploitation of the Real Estate Investment Trust (REIT) regime where businesses restructure to gain the benefits of the regime;

  • the Schedule removes an unintended barrier to joining the regime;

  • the Schedule allows that a charge to tax incurred by a REIT for breaching the profit finance cost ratio may be waived in particular circumstances; and

  • the remainder of the Schedule clarifies and makes more consistent the existing legislation.

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