UK REIT Bill Eyed for '06

The United Kingdom's chancellor of the Exchequer plans to draft a legislative proposal in 2006 that would allow for the creation of U.K. real estate investment trusts if a consensus can be reached with the real estate finance industry on the proposed tax treatment of the entities.Among the chancellor's requirements is that the REIT creation come "at no overall cost to the Exchequer." The chancellor made the plans in conjunction with the release of responses to a 2004 budget consultation on the issue that "has enabled the Government to better define the key features of a potential UK-REIT model that allows for market flexibility."