British Land Company and Shell Petroleum Development Company of Essay

British Land Company and Shell Petroleum Development Company of Nigeria - Essay Example position of the quoted property shares with the key ingredients for stronger performance, hinging on enhancing the level of performance, intensity of the business and accessibilities. Further as REIT, the company does not need to pay any property taxes on the profits and gains from the property business. However, it is necessary for 90% of the income from the exempted business needs to be distributed to shareholders. (British Land. 2007). Being one of the largest property management companies today, with assets under management in excess of  £18 billion and a market capitalisation of some  £5.8 billion, British Land invests primarily in UK property. The focus is on actively managing, financing and developing prime commercial property to create the environment in which modern business can thrive. Following the company’s takeover of Pillar Property PLC in summer 2005, the it is now manager/adviser to, and investor in, a number of offshore unit trusts with total assets of some  £3 billion. (British Land Company Plc. 2006). The regime allows the companies to be free of income tax and capital gains tax by release of just a one time payment. The tax problems the property companies have to undergo are in the context of the double taxation – there is a tax element at the time of rental income and profits, and again, at the time of disbursing dividends to the shareholders. In order to qualify for tax exemption, the company has to be a UK resident company, it has to be a close ended domestic company and should be listed with the Stock Exchanges. Also, it should have primarily two classes of shares, equity and non participating preferential share capital. The other governing conditions are in terms of the fact that it needs to have a minimum of 3 separate rental property of any kind, the valuation of any single property should constitute more than 40% of the total valuation and the company should be in a position to disburse at least 90% of its untaxed incomes as