Big Yellow Group, one of the largest operators of self-storage in the United Kingdom, has been holding discussions with HM Revenue and Customs (HMRC) to determine whether it can convert to a real estate investment trust (REIT). HMRC, the organization that collects and administers the U.K.'s tax revenue and related benefits, must agree to change tax treatment of Big Yellow's self-storage rental income from Schedule D to Schedule A, a necessary REIT qualification.
While Big Yellow has not yet reached an accord with HMRC, it has made the election for REIT status to preserve the expected benefits from the earliest date. As expected, HMRC objected to the notification, but has agreed to continue negotiations with the company. Big Yellow's board of directors believes the conversion will ultimately be successful.
For more information, visit www.bigyellow.co.uk.