Property Income Distributions (PIDs) from REITs

I received Property Income Distributions (PIDs) from REITs. As a higher rate taxpayer, I believe I'm liable to pay extra 20% on the income according to https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim5330. My questions are: 1. I do not normally complete a tax return, how do I inform HMRC so that they can adjust my tax code? 2. Is Property allowance of £1000 applicable to PIDs (https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income#insa) Many thanks

Hi,

Property income dividends are taxed as income and are shown in Page TR3 boxes 17 to 20 in SA100. They do not qualify for £1000 property allowance. You can see guidance here:

SAIM5330 - Dividends and other company distributions: UK Real Estate Investment Trusts: taxation of distributions

Thank you.

If a Hong Kong resident individual receives a distribution from a UK REIT, from which 20% UK tax was withheld, can the Hong Kong individual claim back any of the 20% tax from the UK Revenue? If so, is the entitlement to a refund pursuant to Article 10(2)(b) - Dividends Article - of the UK/Hong Kong treaty? Could you provide a link to the UK refund form, if applicable? Thank you.

Hi,

You can see guidance here:

Tax on your UK income if you live abroad

Thank you.

I have holdings in three REITS listed on the LSE. I was paid dividends of less than £1,000. I have had tax deducted. How do I list this income and the taxes already paid on my self-assessment?

Hi Belasting,
Thanks for your question.
If you have received income from REITs, I would advise to declare these within Box 17 of the SA100 Tax Return, page TR3.
Thank you.

I don't find a Box 17. I fill in an online tax return, which asks me when tailoring my return if I receive property income more than £1,000. I find no other obvious place to enter this income and the taxes already paid on it. Help.

I have exactly the same question, so I would appreciate guidance from HMRC. I am also filling in my self-assessment online and the fields on it are not numbered.

Hi ,
 

Thank you for your question. As your income is from REITs and not directly from property income the income should be declared  at box 17 on page 3 of the SA100 and not on the supplementary income from property page. The tax deducted from this income can be entered at box 19. Thank you .

Hi, I am considering investing in UK REIT's and have a couple of questions related to their taxation. I am a non-UK tax resident living in Australia (where I am a citizen). However, I also hold UK citizenship and have previously resided in the UK. My questions are: 1. As a UK citizen I understand that I am still entitled to the personal allowance £12,570. If my Property Investment Distributions (PID's) are below this threshold is the withholding tax paid rebatable? I am aware of the UK/Australia 15% withholding tax rate, but I am wondering if (assuming the PID's is less than my personal allowance) the full amount is rebatable? 2. If this is the case is the correct means of reclaiming tax paid the submission of HMRC Form R43? Thank you,

Hi Joseph Gebbels,
UK-REITS and NON UK REITS are vehicles that allows an investor to obtain broadly similar returns from their investment, as they would have, had they invested
directly in property.  
In the hands of the shareholder, the profits paid out are known as property income distributions or dividends (PIDs) and are taxable in the same way as profits of a UK
property rental business. Where Non UK REITs are distributed, the profits and foreign tax deducted are declared in the foreign sections under 'income from land and
property abroad', where a foreign tax credit can be claimed.  
They are not taxed as dividends, but as property income.  
Foreign tax credit relief is restriced in a similar way to dividends.  
You can find the tax treaties at Tax treaties.
They should be declared in a tax return at Boxes 17 – 21 of page TR3 of SA100 or Page 2 of 3 of tailor your return - "Did you receive any other UK income, for example,
employment lump sums, share schemes, life insurance gains?".  
Non UK REITs should be declared in the foreign section.
Thank you.