Punch Taverns could save £30m in tax upon a successful conversion to a real estate investment trust (reit). Last month the company brought forward an interim management statement following rumours it had breached banking covenants. At that time it announced it had found a way to adopt the tax-efficient scheme and keep its leased arm and Spirit Group. Today in a presentation to analysts the company revealed that its tax bill would reduced on reit conversion to £20m – down from a projected FY10 cost of £50m. As a result the company believes it would be able to increase its dividend to between £90m and £110m. Its current dividend is £42m. In the presentation to analysts Punch's management team reiterated that the company was trading in line with expectations. It also added that the benefit of the combined structure would be maintained by coverting to a reit. Punch also believes adoption of the tax-saving scheme would alow the company to retain the ability to acuire or divest parts of the business.