Real Estate Investment Trusts or REITs
Real Estate Investment Trusts or REITs are UK property companies that qualify for some tax exemptions (corporation tax on income and CGT on capital gains) provided that they meet some criteria. They have to be UK registered, listed on a recognised exchange and distribute 90% of their income. 75% of the property they hold (by value) and 75% of the income they earn must come from renting property – so a property company that mainly focuses on development would not qualify.
Some REITs are included in AIC property sectors, others are not.
The list of REITs we cover is