Shares in Solihull-based Enterprise Inns soared nearly 30% today after Revenue officials rubber-stamped plans to take on tax-efficient REIT status.

The UK's second biggest pubs group, which has 7,000 pubs, has been in talks with Her Majesty's Revenue & Customs for the past year over the potential move.

Real Estate Investment Trusts enable firms to spin off their property holdings into the new listed entities to unlock potential value and increase dividend payouts to shareholders.

Enterprise said today that revenue officials had confirmed its eligibility to convert to REIT status subject to a restructuring of the business, making it the first UK pubs company to do so if it goes ahead.

Shares in the group jumped 29% or 115.25p to 510p - the highest since last December - on the news, which came just before the close of trading.

Rival Punch Taverns, which said in results two weeks ago that it was also considering becoming a REIT, saw shares jump 11%.

Enterprise said it was working on detailed plans with its financial and tax advisers before deciding whether to recommend the move to shareholders. This process is expected to last several months.

The tax hopes have been a rare bright spot for a sector suffering difficult trading conditions after last summer's smoking ban and a squeeze on consumer spending.

REITs have been around since the 1960s and 70s in countries such as the US and Australia, but were only introduced in the UK in January last year. Several property companies elected to take on the new status.