Proceeding contribution from Lord Davies of Stamford (Conservative) in the House of Commons on Wednesday, 3 May 2006. It occurred during Debate on bill and Committee of the Whole House (HC) on Finance (No 2) Bill.
Finance (No. 2) Bill
Does my hon. Friend agree that it may not be entirely sensible to have a restriction of 1.25:1 on the maximum leverage that a REIT can undertake? There is nothing to stop a REIT from investing in a project or a building which itself carries a much greater degree of leverage. Investors will not be protected by this restriction. On the other hand, it prevents somebody from setting up a REIT with the specific objective of offering a highly leveraged play in the real estate market. Some people might like a higher-risk instrument at certain stages of the property cycle, so why should the Government officiously cut off that opportunity? Does my hon. Friend agree that this matter has not been as thoroughly thought through as it might be?
Secondary information
- Type
- Proceeding contribution
- Reference
- 445 c1047
- Session
- 2005-06
- Chamber / Committee
- House of Commons chamber
- Subjects
- Companies Assets Climate change Cars Concessions Finance Investment Income tax Excise duties Inheritance tax Property Transport Small businesses Shares Tax allowances Taxation Research Rural areas Real estate investment trusts Enterprise investment scheme Venture capital trusts
- Legislation
- Finance (No. 2) Bill 2005-06
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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- 2024-04-21 22:59:05 +0100
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