REIT Information

Important Note

This summary of the United Kingdom (UK) tax consequences for shareholders is intended to provide only a general outline of the subjects covered and is restricted to UK tax consequences only. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of independent professional tax advice. Metric Property Investments plc accepts no responsibility for any loss arising from any action taken or not taken by any person using this material.

Real Estate Investment Trusts - Tax Consequences for Shareholders

Metric Property Investments plc converted to Real Estate Investment Trust (REIT) status with effect from 24 March 2010, and expects dividends payable out of profits earned thereafter to primarily comprise REIT Property Income Distributions (PIDs) derived from its tax-exempt, UK property rental business and potentially ordinary, non-PID dividends derived from profits earned by its UK, non-REIT taxable business.

Dividends may be solely PIDs, solely ordinary dividends or a mixture of the two. However, one of the requirements of the UK REIT regime is that at least 90 per cent of the income profits of the tax-exempt, UK property rental business (as calculated in accordance with the UK REIT legislation) arising each accounting period are distributed. The precise elements of each dividend payable will be announced in advance, and will be clearly stated on the dividend vouchers themselves.

Ordinary, non-PID dividends will be treated in exactly the same way by shareholders as ordinary dividends. Such dividends will therefore be taxed in the same way as are dividends received by shareholders of non-REIT companies. Accordingly ordinary non-REIT dividends will carry a non-refundable, notional tax credit of one-ninth of the net amount of the dividend received.

PIDs are normally treated for UK tax purposes as taxable property letting income in shareholders' hands, albeit separate from any other property letting business which shareholders may carry on. PIDs will generally be paid after deduction of withholding tax at the basic rate of tax, currently 20 per cent. However, certain classes of shareholder may be able to receive PIDs gross, without deduction of tax. Such classes of shareholder include UK companies, charities, local authorities, UK registered Pension schemes and managers of PEPs, ISAs and Child Trust Funds. Overseas shareholders and individual private shareholders will not be eligible to claim exemption from deduction of withholding tax, but non-UK resident shareholders resident in countries which have a double tax treaty with the UK may be able to obtain a partial refund of the tax withheld (see below).

Shareholder's who believe that they are eligible to claim exemption from withholding tax on PID payments should download the appropriate form from this page, complete it and submit it by post without delay to the company's Registrars, at:

Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS13 8FB

Withholding tax may be credited against a shareholder's tax liability on PIDs received. UK non tax-paying individual shareholders will be entitled to a refund of the tax withheld.

Non-UK resident shareholders in countries with double tax treaties with the UK which provide for withholding tax on dividends at rates lower than 22 per cent, may be able to make claims for repayment of the difference from HM Revenue & Customs, Residency, Fitz Roy House, PO Box 46, Nottingham, England, NG2 1BD.

Withholding tax exemption claim forms

Title	Format
Beneficial Owner Declaration of Eligibility for Gross PID Payments from UK REIT
Intermediary Declaration of Eligibility for Gross PID Payments from UK REIT