Paschal Donohoe (Dublin Central, Fine Gael)
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That is fine. Section 28 provides for a number of amendments to the tax regime for Real Estate Investment Trusts, or REITs, to ensure that the correct tax is paid in relation to the disposal of property by a REIT and to encourage long-term, stable investment in rental property. One of these measures provides that where a REIT disposes of a property, it must either reinvest the proceeds in property assets or distribute the proceeds to shareholders within a two year period. I am proposing an amendment to this provision to ensure that it is proportionate and operates as intended.

The amendment has two elements. The first element provides that the proceeds from a disposal of a property can be used to repay any debt associated with the disposed property. The second is to extend the reinvestment period to include the 12 months prior to the disposal, in addition to the 24-month period following the disposal of the property in which the REIT may reinvest the proceeds. Following consultation, it has been advised that it is not uncommon for a REIT to acquire a new property before the disposal of a property, whose disposal is being used to fund or part-fund the new acquisition. I commend the amendment to the committee.