Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to SalvorHardin,Loup321,pje16,AsleepInYorkshire,swill453, for Donating to support the site

Tax treatment of REIT shares held in a UK Limited Company.

Practical Issues
flyer61
Lemon Slice
Posts: 459
Joined: November 11th, 2016, 12:53 pm
Has thanked: 111 times
Been thanked: 148 times

Tax treatment of REIT shares held in a UK Limited Company.

#425843

Postby flyer61 » July 8th, 2021, 12:21 pm

Does anybody have any knowledge or could guide me in the correct direction concerning the tax treatment of dividends received from REIT's held in a UK Ltd Company.

genou
Lemon Slice
Posts: 622
Joined: November 4th, 2016, 1:12 pm
Has thanked: 86 times
Been thanked: 211 times

Re: Tax treatment of REIT shares held in a UK Limited Company.

#425890

Postby genou » July 8th, 2021, 2:39 pm

flyer61 wrote:Does anybody have any knowledge or could guide me in the correct direction concerning the tax treatment of dividends received from REIT's held in a UK Ltd Company.


That'd be https://www.legislation.gov.uk/ukpga/2010/4/section/548 , specifically sub(5)

(5)If the shareholder is within the charge to corporation tax, the distribution is to be treated as profits of a UK property business (within the meaning given by section 205 of CTA 2009) so far as the distribution is a distribution of exempt profits .


The company is eligible to receive the PIDs gross, but will have to claim that by letting the REIT know ( no idea what to do if you have an intermediary - ask them ) .

BobGe
Lemon Slice
Posts: 365
Joined: November 5th, 2016, 12:49 am
Has thanked: 166 times
Been thanked: 65 times

Re: Tax treatment of REIT shares held in a UK Limited Company.

#426009

Postby BobGe » July 9th, 2021, 5:49 am

genou wrote:The company is eligible to receive the PIDs gross, but will have to claim that by letting the REIT know ( no idea what to do if you have an intermediary - ask them ) .

Any idea what the situation would be if the PID is received nett?

genou
Lemon Slice
Posts: 622
Joined: November 4th, 2016, 1:12 pm
Has thanked: 86 times
Been thanked: 211 times

Re: Tax treatment of REIT shares held in a UK Limited Company.

#426163

Postby genou » July 9th, 2021, 12:35 pm

BobGe wrote:
genou wrote:The company is eligible to receive the PIDs gross, but will have to claim that by letting the REIT know ( no idea what to do if you have an intermediary - ask them ) .

Any idea what the situation would be if the PID is received nett?


Not got a clue, sorry.

flyer61
Lemon Slice
Posts: 459
Joined: November 11th, 2016, 12:53 pm
Has thanked: 111 times
Been thanked: 148 times

Re: Tax treatment of REIT shares held in a UK Limited Company.

#426458

Postby flyer61 » July 10th, 2021, 2:39 pm

Thanks for the replies.

My provider says they will be paid net ie minus 20%. Need now to work out how or if this can be reclaimed.

Also this little gem to sort out. A Legal Entity Identifier

https://www.lseg.com/LEI

flyer61
Lemon Slice
Posts: 459
Joined: November 11th, 2016, 12:53 pm
Has thanked: 111 times
Been thanked: 148 times

Re: Tax treatment of REIT shares held in a UK Limited Company.

#427126

Postby flyer61 » July 12th, 2021, 5:47 pm

Now have an LEIdentifier. Probably the worst website I have ever come across. Two phone calls to Bucharest got us over the line.

Before anybody says was it a scam...my providers website accepted the 20 digit/alphabet code they sent.

BobGe
Lemon Slice
Posts: 365
Joined: November 5th, 2016, 12:49 am
Has thanked: 166 times
Been thanked: 65 times

Re: Tax treatment of REIT shares held in a UK Limited Company.

#428659

Postby BobGe » July 19th, 2021, 5:30 am

If you don't mind saying, what was the cost?

flyer61
Lemon Slice
Posts: 459
Joined: November 11th, 2016, 12:53 pm
Has thanked: 111 times
Been thanked: 148 times

Re: Tax treatment of REIT shares held in a UK Limited Company.

#428799

Postby flyer61 » July 19th, 2021, 2:30 pm

Think it was 90 quid plus VAT and it is payable annually.


Return to “Taxes (Practical)”

Who is online

Users browsing this forum: No registered users and 3 guests