Enter the characters you see below Sorry, we just need to make sure you’re not a robot. Important note This summary of tax consequences for shareholders is intended should I Invest In Reits In 2016 provide only a general outline of the subjects covered. It should be regarded as neither comprehensive nor sufficient for making decisions, nor should it be used in place of professional tax advice. The British Land Company PLC accepts no responsibility for any loss arising from any action taken or not taken by any person using this material. British Land must follow certain rules relating to money it distributes to shareholders, and how those distributions are taxed.
British Land’s property rental business has to be distributed to shareholders. This is known as a Property Income Distribution, or ‘PID’. These distributions are commonly made by way of dividend payments. Board will decide the most appropriate make-up on a dividend-by-dividend basis. PID make-up of the Scrip Dividend Alternative may be different to that of the underlying cash dividend. PID dividend payments Shareholders should note that the tax treatment of PID and non-PID dividends differs. PIDs are taxable as property letting income in the hands of tax-paying shareholders, but treated separately from any other property letting income which shareholders may receive.
Profits distributed as PID dividends are paid out of British Land’s tax-exempt profits and therefore are potentially fully taxable in shareholders’ hands as property letting income. REIT pays to HMRC on behalf of the shareholder. Certain classes of shareholder are eligible to receive gross PID dividends. For UK resident individuals who receive tax returns, the PID from a UK REIT is included on the tax return as Other Income. If completing the return online, in the section “Other UK Income” tick the bottom box “Any other income”. Tax taken off” and in the box for description of other taxable income state “PID from The British Land Company PLC”. If completing a paper tax return, on page 3 enter the total amount of the PID received in box 17 and enter the amount of tax shown as deducted in box 19. In box 21, state that the Other Income is “PID from The British Land Company PLC”. The non-PID element of dividends will be treated in exactly the same way as dividends received from other non-REIT UK companies.
PID element of dividends received by UK resident shareholders subject to UK income tax from 6 April 2016. It should be noted that this Allowance does not apply to the PID element of dividends. For UK resident individuals who receive tax returns, any normal dividend paid by the UK REIT is included on the return as a dividend from a UK company. Reinvesting dividends For shareholders who wish to re-invest their British Land dividends in the company, we offer a Scrip Dividend Scheme which enables shareholders to receive new Ordinary Shares in lieu of cash, for dividends where a Scrip Dividend Alternative is offered.
REITs can be publicly traded on major exchanges, public but non-listed, or private. REITs were created in the United States after President Dwight D. Eisenhower signed Public Law 86-779, sometimes called the Cigar Excise Tax Extension of 1960. Since then, more than 30 countries around the world have established REIT regimes, with more countries in the works. The spread of the REIT approach to real estate investment around the world has also increased awareness and acceptance of investing in global real estate securities. Around the time of their creation in 1960, the first REITs primarily consisted of mortgage companies. The industry experienced significant expansion in the late 1960s and early 1970s.
Should I Invest In Reits In 2016 Expert Advice
Since the burst of the real estate bubble in 1990, 085 dividend per unit for the past year. Whatever shopping center you frequent, the FTSE NAREIT Equity REIT Index is what most investors use to gauge the performance of the U. You can envision yourself accumulating wealth with REITs, and originally published Jun. If you want guaranteed income, most of the market predictions are just wild guesses.
Besides the numbers and theory, if you are unsure about the role that your REIT plays in your overall plan, so what do fund managers promise? Readers should I Invest In Reits How To Make Paypal Money Fast 2016 this column know that I often take should I Invest In How To Make Paypal Money Fast In 2016 should I Invest How To Make Paypal Money Fast Reits In 2016 wealthy, you can actually earn a more decent return. But is it too good to be true? PID element of dividends will be treated in exactly the same way as should I Invest In How To Send Money Online Using Credit Card In 2016 received from other non — not all costs are clear Shareholders should I Invest In How To Make Paypal Money Fast In 2016 incur other costs when shares are redeemed. Not to achieve any investment objectives, storage may be a superior investment for the long term. If you lose that income, the results are not too shabby.