Glossary · Investing
REIT (Real Estate Investment Trust)
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Definition: A listed company that invests in property and pays out most of its rental income as dividends. UK REITs are largely tax-exempt at the company level.
REIT property income distributions (PIDs) are taxed at savings-income rates (so covered by the Personal Savings Allowance), not dividend-tax rates. Holding REITs inside an ISA or pension shelters this from tax entirely.
Primary source: gov.uk/hmrc-internal-manuals/investment-funds