As UK REITs, Bricklane.com’s funds will be exempt from paying tax on increases in the value of property owned, and rental income received. The Regional Capitals fund is already a REIT, the London fund will become a REIT once it owns three properties, which it is expected to do shortly.
If you hold your Bricklane.com investments through an ISA, this means you are also personally exempt from tax on the gains in the value of your investments, and on income received. See further details on ISAs above.
Through combining the ISA and REIT structures, Bricklane.com allows investors to receive similar tax treatment to owning their own home directly.
The funds pay Stamp Duty Land Tax on all purchases at the higher rate established during the 2016 Budget.
A Stamp Duty Reserve Tax is levied on electronic secondary purchase of shares - i.e the purchase of shares by one investor from another - including on shares in Bricklane.com’s funds. This is allocated fairly across investors in each fortnightly trading cycle, and will not exceed 0.5% of the investment. Any amount due will be deducted from your deposit.
We do not provide personal tax advice and tax rates, allowances and rules referred to are liable to change. Please note that the tax advantages of ISAs depend on your individual circumstances. If you are unsure of your position, please consult a professional advisor.