£1000 Property Allowance usable for PIDs?

Barry_Man

Does anyone know if the £1000 annual Property Allowance is usable for Property Income Distributions (PIDs) from Real Estate Investment Trusts (REITs)?

I've had a look around and have not seen anything that specifically excludes them. But likewise not seen anything that specifically includes them. HMRC (.gov.uk) site does not comment one way or the other - https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income#property

IanManc

Barry_Man wrote: »

Does anyone know if the £1000 annual Property Allowance is usable for Property Income Distributions (PIDs) from Real Estate Investment Trusts (REITs)?

I've had a look around and have not seen anything that specifically excludes them. But likewise not seen anything that specifically includes them. HMRC (.gov.uk) site does not comment one way or the other - https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income#property

I don't know the answer, but on the page you linked to it says:

"You cannot use the allowances in a tax year, if you have any trade or property income from:
.a company you or someone connected to you owns or controls".

If you have shares in a REIT you are an owner of the company paying the income - albeit an owner of a tiny fraction together with many others.

That would be enough to put me off.

00ec25

as he says above.

Barry_Man

I'd say that "You cannot use the allowances in a tax year, if you have any trade or property income from a company you or someone connected to you owns or controls" is refering to close company situations.

But in any event, have found the relevant legislation now at http://www.legislation.gov.uk/ukpga/2017/32/schedule/3/enacted 783BA(3) and it is definitely a no go. The legislation (effectively) states:

If an individual receives distributions which are treated as profits of a UK property business by virtue of section 548(6) of CTA 2010 (REIT distributions: liability to tax), that separate property business (see regulation 69Z18(6) of the AIF Regulations and section 549(5) of CTA 2010) is not a relevant property business of the individual.

Thanks for your inputs anyways.