Property gets a positive boost post budget speech
20 February 2019
Property may have received less airtime than some may have hoped for, but the Budget contained some positive take-aways. Although limited detail, the Minister announced the expansion of the Real Estate Investment Trust (REIT) tax regime to qualifying unlisted REITs. Tax legislation focused on REITs provided much needed certainty to listed REITs and their investors, since 2014. Expanding it to non-listed qualifying REITs in line with international norms is welcomed.
Urban developments in designated municipalities have been a visibly successful incentive and the tax incentive arguably played a critical part in its success. Extending or expanding the UDZ tax allowances (set to expire in 2020) will certainly be more than only aesthetically pleasing.
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