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Posted Thu, 24 Oct 2024 23:15:35 GMT by Emily1012
Please advise whether the below is correct (1) Cash dividend from foreign REIT should be treated as income from foreign property (2) Stock dividend from foreign REIT should be treated as income from foreign property
Posted Thu, 31 Oct 2024 15:06:15 GMT by HMRC Admin 19 Response
Hi,
UK REITs and non UK REITs are vehicles that allows an investor to obtain broadly similar returns from their investment, as they would have, had they invested directly in property. In the hands of the shareholder, the profits paid out are known as property income distributions or dividends (PIDs) and are taxable in the same way as profits of a UK property rental business.  
Where Non UK REITs are distributed, the profits and foreign tax deducted are declared in the foreign sections under 'income from land and property abroad', where a foreign tax credit can be claimed. They are not taxed as dividends, but as property income.
Thank you.
 

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