Real estate investment trust
Taxation - UK.
Under UK law and tax rules, a real estate investment trust is a UK company that invests in properties let to third parties, and distributes at least 90% of its profits to shareholders.
The qualifying activities of REITs are exempt from UK Corporation Tax.
Shareholders in the REIT are taxed on distributions of related profits and gains from the REIT, in such a way as to leave them in the same after-tax position as if they had invested directly into the properties held by the REIT.