A Real Estate Investment Trust (REIT) is a company that owns and manges property on behalf of its shareholders. A REIT can contain commercial and/or residential property and provide a way for investors to access the risks and rewards of holding property without having to buy property directly.
- UK REITs are exempt from corporate tax on profits and gains from their UK qualifiing property rental businesses
- In return, UK REITs are required to distribute at least 90% of their taxable income to shareholders
- In this way taxation of income from property is moved from the corporate level to the investor level