Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Tax is always a key issue of course, and we have to look at this model in the context of a rational and holistic approach to taxation and pensions policy.

This government is falling over itself for people to "get on the property ladder". But all the government does do is bid up land prices further.

This approach essentially takes the land out of the equation (properties are never bought or sold again) and opens up new policy options (which I have not outlined in the article for the sake of simplicity) for the relationship between the community/municipality and the individual.

Firstly, is it in fact "income" or a "capital gain"? One could probably configure "Equity Shares" to be the latter, and few indeed use up their capital gains allowance each year.

Secondly, when the LLP was legislated in 2001 the government specifically prevented pension tax relief on "Property Investment LLP's" so it is not currently feasible either for institutional or personal investment (in a SIPP, say).

But I would bet that this will change soon enough if UK investors see foreign pension investors accessing tasty UK asset classes which they cannot.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Thu Apr 10th, 2008 at 03:41:01 PM EST
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