REITs in ISAs

Hi :wave:

I was just wondering when REITs will become available in ISAs?

I want to add them to help diversify my portfolio but would like them within my ISA account to take advantage of the tax wrapper etc.

Thanks

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I doubt that will happen at all given the current tax laws.

I hold REITs in various ISAs with various platforms. So it is possible.

https://www.charles-stanley-direct.co.uk/ViewInvestment?Sedol=0136701&Symbol=BLND&Name=BRITISH_LAND_CO_ORD_GBP0.25

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You can find £BCPT, £IWDP, £TRY and £IUKP which are property trusts in Freetrade. Are they not available in an ISA?

I don’t really understand your point, but if those stocks are not available in a Freetrade ISA them I am again stumped.

They all give you property exposure but none of those you list are technically REITs.

IUKP and IWDP are ETFs, no? Irish domiciled, UK listed etc…etc… all the key components to make them ISA compliant.

TRY is an IT… again meeting all the requirements to be ISA’able

BCPT I’m unsure of it’s legal status off the top of my head…probably classified simplier to a close ended investment trust…but either way should be ISA’able, no?

Yes as FinKi mentioned, REITs are available in ISAs with other brokers.

(By the way thanks for the FinKi API it’s amazing ! :grinning:)

Although Fulforce Joe highlighted some other funds that are available in the ISA and that could give exposure to property I really would like to hold some of the REITs currently only listed in the basic account.

As it seems to be an issue with REITs and not property funds in general I was just wondering when ones like LAND/ BLND will become available in the ISA. I don’t know if the team is already working on this or not hence the question about timing.

I do understand the team have a lot going on, but I think this would be greatly appreciated by all ISA users especially as REITs are such a headache themselves regarding tax returns etc.

Btw thanks for all the responses, I appreciate every one of them! :+1:

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In which case @finki sorry, I’ve completely misunderstood a REIT. I wrongly assumed that those Property ETF’s were essentially the same thing

I was a little disappointed to see reits are disabled on isa accounts, do we have any news on this?

Thanks for this info @finki I assumed it wasn’t at all possible - due to PIDs or something unique to REITs.

Defo would like to understand from the @freetrade team why this is is constrained - and if there’s scope for change.

CC: @Viktor @Ian @adam

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Would be great to have REITs in ISA… The only reason why I am not investing on them right now is because I cannot be bothered to do the tax stuff

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I’d also like to know the answer to this. Holding REITs out if an ISA is potentially costly as I believe property income distribution (PID) dividends are taxed differently to normal dividends. Personally, I don’t want another thing to have to work out for my tax return!

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Let me double check why and get back to you ASAP.

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Hi Ian, I just stumbled across this post. Seems to suggest it do with the complication of getting the 20% tax credit on REIT dividends.

That’s the crux of it. Just looking into what/if we can do to support it.

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Yes that’s right, to hold a REIT within an ISA there are some additional steps with regards to tax, and we’re unable to carry these out using our current system.

We wanted to make REITs available to customers as soon as possible so we decided to offer these to Basic accounts only. Once we launch our own platform we’ll review how we can support these in ISAs as well.

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Thanks for the info… the new platform’s going to make a world of difference.

Is there more info on when this is expected?

Getting everyone transferred over to the new Investment Platform is part of our 2019 Christmas List!

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Super, thanks for that!