20 Jul 2021

HMT published a consultation in March 2020 exploring whether changes to the tax treatment of companies used by funds to hold assets could make the UK a more attractive location for these companies. AREF’s response to this can be found here.

In December 2020, HMT published their response and a second stage consultation. In this they summarised the responses submitted to the initial consultation and outlined the Government’s response. They believed that there was a strong case for change in this area and therefore, launched a second stage consultation on detailed design features of a new regime for asset holding companies (AHCs). The consultation also considered targeted changes to the REIT regime. AREF's response to this second consultation can be found here.

The Government published their response to the second stage consultation in July 2021. In this they set out the detail of the forthcoming regime for AHCs, as well as targeted changes to the tax regime for Real Estate Investment Trusts. Alongside the consultation response, the government published a policy paper and draft legislation which is intended to be taken forward in the next Finance Bill.



whos who me

Chris Hewitt

Tax Advisor, AREF