PIDs instead of Dividends-Taxation in ISA

clivep

A bit similar to another thread but specific to a REIT held in an ISA.

I have shares in the Primary Health Properties PLC REIT. I have received a Property Income Distribution as well as a div. This is the first time this has happened and the PID has tax deducted at 20%.

The shares are held in an ISA with IWeb so no tax should be payable.

The guidance for ISA managers is at https://www.gov.uk/guidance/individual-savings-accounts-isas-for-managers-making-returns-to-hm-revenue-and-customs.

Depending on how they operate, the ISA manager can either arrange for the PID to be paid gross or reclaim the tax from HMRC if the PID is paid net.

As my PID has been paid net then I'll need to ensure that IWeb reclaims the tax. I have read "It can take 4-6 weeks after the PID is credited to your account for the reclaimed tax to turn up as cash".

xylophone

I hold a couple of REITS in an ISA with II.

The PIDS are paid net and II reclaim the tax refund.

This can be up to eight weeks from the payment of the PID.