A real estate investment trust (REIT) is a property investment company which, very broadly, simulates (from a tax perspective) direct investment in UK property, and so avoids the double taxation that can arise when investing through a corporate structure. It also enables UK tax exempt investors to benefit from their own tax status so that they can receive gross of tax returns from indirect investment as they can from direct property investment.
The appeal of the UK REIT continues to grow. Originally the exclusive preserve of the public markets, successive changes to the regime since its inception in 2007 have been designed to allow a broader category of investors to establish REITs, including private equity and institutional capital.
Important changes include:
