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Tax treatment of REIT shares held in a UK Limited Company.
Posted: July 8th, 2021, 12:21 pm
by flyer61
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.
Re: Tax treatment of REIT shares held in a UK Limited Company.
Posted: July 8th, 2021, 2:39 pm
by genou
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 ) .
Re: Tax treatment of REIT shares held in a UK Limited Company.
Posted: July 9th, 2021, 5:49 am
by BobGe
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?
Re: Tax treatment of REIT shares held in a UK Limited Company.
Posted: July 9th, 2021, 12:35 pm
by genou
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.
Re: Tax treatment of REIT shares held in a UK Limited Company.
Posted: July 10th, 2021, 2:39 pm
by flyer61
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
Re: Tax treatment of REIT shares held in a UK Limited Company.
Posted: July 12th, 2021, 5:47 pm
by flyer61
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.
Re: Tax treatment of REIT shares held in a UK Limited Company.
Posted: July 19th, 2021, 5:30 am
by BobGe
If you don't mind saying, what was the cost?
Re: Tax treatment of REIT shares held in a UK Limited Company.
Posted: July 19th, 2021, 2:30 pm
by flyer61
Think it was 90 quid plus VAT and it is payable annually.