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8.1.4. Real Estate Investment Trusts (REITs)

The profits of a REIT are not taxable in the hands of the REIT itself. The profits are taxable only in the hands of the recipients of distributions from the REIT (as income from a UK property business). The residual income and gains (that is, those not derived from its property rental business) of an REIT are taxed in accordance with the normal corporation tax rules.