£1000 Property Allowance usable for PIDs?

Barry_Man · 16 June 2019 at 11:13AM

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

00ec25 · 16 June 2019 at 4:11PM

as he says above.

Barry_Man · 16 June 2019 at 5:26PM

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.

£1000 Property Allowance usable for PIDs?

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