We will introduce purchasers to a letting agent closer to completion in 2008. The
developer will establish a management company and appoint a management agent
to manage the overall development on behalf of the individual leasehold owners. The annual service charges will be agreed on completion. In today’s terms we could expect that service charges to be circa Stg£1,800 per annum for a one-bedroom apartment and Stg£2,500 for a two-bedroom apartment.

We set out overleaf our understanding of some of the income tax and capital gains tax issues facing Irish resident and domiciled individuals who acquire residential property in the UK. Please note that investors should not rely on this information and we strongly advise all investors to consult their taxation advisers in respect of all tax issues regarding the ownership and letting of residential property in the UK, and any UK inheritance tax issues that may arise.

Landlords will be required to file annual income tax returns with the Inland Revenue in the UK and the Revenue Commissioners in Ireland that declares the taxable rental income that arises on their properties in the UK. Please note that Irish tax resident landlords will receive a credit against any Irish income tax liabilities for any income tax paid in the UK on UK-source rental income. In addition, please note that taxable rental income for both Irish and UK income tax purposes is calculated by deducting loan interest and other costs, such as service and letting charges, from gross rental income. At present, non-resident UK landlords (such as Irish residents) are not liable to UK capital gains tax on capital gains arising on a disposal of UK property. Irish residents are liable to Irish capital gains tax (currently 20%) on capital gains arising on a disposal of UK property. Each landlord will be required to receive rents and pay costs (including loan payments) via a sterling current account.

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