So, you’re looking to build a dividend income by building a portfolio of the best REITs in UK. Well, dividends are a great way to generate a passive income from your investments, but did you know that you’ll have to pay taxes on your REIT dividends in UK? The amount of taxes you’re required to pay on your REIT dividends will depend on various factors which we’ll explore in greater detail in this article. *p.s. in this article, we’re referring to cash dividends from REITs. Some REITs may give you the option to receive stock dividends where you’ll be paid in shares instead of cash. In those cases, unless you sell your REIT unit, you would not be taxed.
Two Types of REIT dividends in UK
Before we explore how dividends are taxed, let’s look at the types of REITs dividends that you could be receiving. Hint, this is...