End of property seeding relief arouses mixed feelings

NEWS ANALYSIS

Changes announced in Budget may render future property unit trust launches less attractive

Groups look unlikely to launch further property unit trusts following the elimination of the Stamp Duty Land Tax (SDLT) exemption in last month's Budget. The exemption applied when existing properties were used to seed a new fund, meaning in cases where the property's value exceeded £500,000, the fund did not have to pay the 4% tax levied by the Government. Now the relief has been brought to an end, leading Michael Patrick, business development manager on the L&G Property fund, to believe firms will struggle to get new funds off the ground. While the changes will have no bearing on futur...