Redefine International P.L.C converted to a UK-REIT on 4 December 2013.
As a UK-REIT, Redefine International does not pay UK direct taxes on the income and capital gains from its qualifying UK property rental business (the “Tax Exempt Business”).
However, UK-REITs are required to distribute at least 90% of its taxable profits from its Taxable Exempt Business, for each accounting period, in the form of a property income distribution (“PID”) rather than as a dividend. In this way, taxation of income from property is moved from the corporate level to the investor level.
A UK-REIT may elect to designate any additional dividend above the 90% minimum PID, as either a PID or an ordinary dividend (“Non-PID”).
Therefore distribution payments may comprise a mixture of both PID and Non-PID or solely a PID. The amount of PID and any Non-PID elements of each Redefine International dividend will be shown on the associated tax vouchers that will be provided to shareholders within 14 days from the dividend payment date.