What we do

Real estate investment trusts (REITs)

Since 1 January 2007, quoted companies that own and manage income-producing property, either commercial or residential, have been able to convert to REITs (pronounced "reets"). Most of REITs' taxable income (at least 90%) is distributed to shareholders through dividends, in return for which they are largely exempt from corporation tax.

REITs are designed to offer investors income and capital appreciation from rented property assets in a tax-efficient way, with a return more closely aligned with direct property investment. This is achieved by taking away the 'double taxation' (corporation tax plus the tax on dividends) of ordinary property funds.

REITs exist in a number of developed economies and are particularly mature in the US and Australian markets. We have campaigned for a number of years, most recently with the Investment Property Forum and the Royal Institution of Chartered Surveyors, to convince the government that the UK would benefit from a REITs market.

Our campaign was successful and the creation of a REIT regime was encapsulated in the Finance (No.2) Act 2006. We are continuing to lobby, with our partners in the Property Industry Alliance, to extend the regime to AIM listed and unquoted companies and to achieve the regulatory conditions that will allow the new market to grow and flourish.

We initiated a promotional campaign, called Reita, to educate financial advisers, private investors and journalists about REITs and other forms of quoted property investment.