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U.K. Plans to Tax Foreign Sovereign Investors’ Property Income From 2029

Published: Oct. 30, 2026 12:01 p.m. GMT+8

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HM Treasury in London on Oct. 6. Photo: VCG

(London) — The U.K. plans to tax certain income and gains from foreign sovereign investments in British real estate from 2029, ending a long-standing exemption.

On Wednesday, HM Treasury launched a consultation on a proposed statutory “sovereign tax status” from Jan. 1, 2029. The regime would cover certain U.K. property income and gains, plus trading income in limited circumstances. Qualifying interest and ordinary dividends would remain exempt.

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UK to end sovereign exemption, taxing foreign sovereign property income/gains from Jan 2029.
Consultation proposes 15% REIT rate; direct holdings face 25% corporation tax.
Affects Chinese state investors: CIC’s Logicor holds 153 UK properties worth €4bn+.

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Who’s Who

China Investment Corp.: China Investment Corp. (CIC) is China's sovereign wealth fund. It controls Logicor, a European logistics property group that held 153 U.K. properties valued at over €4 billion at the end of last year, according to a bond prospectus.

Logicor: Logicor is a European logistics property group controlled by China Investment Corp., China's sovereign wealth fund. As of the end of last year, it held 153 U.K. properties valued at over 4 billion euros, according to its bond prospectus. The proposed U.K. tax changes could affect such Chinese state-backed investors.

Gingko Tree Investment: Gingko Tree Investment is a Chinese state-backed investor controlled by the State Administration of Foreign Exchange. It has invested in UK commercial property, including Leicester's Fosse Park retail estate. The firm may be affected by proposed UK changes to sovereign tax status from 2029, ending exemptions on certain property income and gains.

Bryan Cave Leighton Paisner: Bryan Cave Leighton Paisner (BCLP), a law firm, is cited in the article regarding the U.K.'s proposed sovereign tax status. According to BCLP, under the new rules, direct holdings of U.K. property by sovereign investors could be subject to a 25% corporation tax rate, whereas eligible investors would get a 15% rate on qualifying distributions via REITs.

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