Groups cautious on latest property taxation

HM Treasury expecting 20 out of 30 property funds will convert to Oeics, but most groups are only keeping situation under review for now

Alistair Darling's first Budget last week confirmed legislation to treat open-ended property funds in the same way as Reits from a tax perspective. The new regime will be in place from 6 April but the Treasury is waiting for the FSA to adjust its rules before groups can officially convert their property unit trusts into Oeics to become Property Authorised Investment Funds. Although HM Treasury anticipates at least 20 out of the current 30 vehicles will convert, few groups have concrete plans are in place. In fact, none of the companies Investment Week surveyed said they would be embra...