The Government has announced a relaxation of the rules on real estate investment trusts, as part of the pre-Budget report.
Reits will have a one-year grace period from the income and asset test, which states that trusts must derive at least 75% of their income from property rental activity.
It has also been revealed that the entry charge, calculated as 2% of gross market value, will not be levied until the end of 2007. Ross (pictured) holds 43% of his fund in British companies, with a focus on nine Reit conversion stocks. “These companies have a high level of capital gains tax on their balance sheets,” he explains.