Revenue Note for Guidance
The income and gains of a REIT or group REIT are exempt from tax in respect of its property rental business only. Income and gains from its residual business (i.e. activities other than property rental business) are taxable.
(1) A company which is a REIT or a company which is a member of a group REIT is not chargeable to tax in respect of income from, or chargeable gains accruing on the disposal of assets of, its property rental business.
(2) Where a REIT acquires an asset, develops the asset, the cost of development exceeds 30% of the market value of the asset at the date on which the development commences and the asset is disposed of within 3 years of completion of the development, then chargeable gains arising from such property development are chargeable to tax.
(3) Deposits of a REIT or a group REIT are exempt from deposit interest retention tax (DIRT).
Relevant Date: Finance Act 2021