Seán Crowe
Ceist:171 Mr. Crowe asked the Minister for Finance if, in view of the success of REITs in Britain, he has plans to introduce a similar system in this country. [8767/04]
Amharc ar fhreagraTuesday, 23 March 2004
Ceisteanna (173)
Freagraí scríofa
REITs, real estate investment trusts, exist in the United States to assist investors achieve diversified ownership of primary passive real estate investments. They qualify as pass-through entities, that is, entities which are able to distribute the majority of income cash flows to investors without taxation at the corporate level providing certain conditions are met. Therefore, an REIT is a tax transparent structure aimed at encouraging increased institutional investment in the housing market and at boosting affordable housing development.
The UK Chancellor, Gordon Brown, announced in his budget speech on 17 March 2004 that the UK Government accepts the recent UK Barker report recommendations for British real estate investment trusts to improve the supply of rented property. In this context it is understood that the British authorities will seek views on how these new vehicles, to be called property investment funds, PIFs, may be structured to meet the objectives of further enhancing the liquidity of property investment. I have no plans at present to introduce a similar system in this country but the position will continue to be monitored by my Department.