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Annual property allowance usable for PIDs?

Is the £1000 annual tax free property allowance usable for Property Income Distributions (PIDs)?

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Is the £1000 annual tax free property allowance usable for Property Income Distributions (PIDs) from Real Estate Investment Trusts (REITs)? E.g. if  shareholder in a REIT receives £1000 or less in PIDs (and no other property income) are they entitled to use annual tax free property allowance.

I've had a look around and have not seen anything that specifically excludes them. But likewise not seen anything that specifically includes them.

Of course, one issue would be that PIDs (normally) have tax deducted at source and so going down the route of not declaring the property income in SA would not be useful unless the REIT is prepared to accept a beneficial owners declaration of eligibility for gross PID payments. Alternatively are HMRC able to refund tax deducted on PIDs if they are declared in SA - presumably in the Property Section, which would be a bit of a pain as PIDs seem to usually be declared  under Other UK Income (thus obviating a need to fill out Property Section just for PIDs).

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By Accountant A
16th Jun 2019 13:06

I'd say no but then I haven't read the legislation either.

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By Tim Vane
16th Jun 2019 13:46

I have read the legislation but not for a while. I seem to remember that PIDs are excepted from the allowance, but honestly you could have looked up the relevant sections in less time than it took you to post the question.

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By ebatch
16th Jun 2019 18:23

Thanks, found it now at http://www.legislation.gov.uk/ukpga/2017/32/schedule/3/enacted 783BA(3) and it is definitely a no go.

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