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Claim other income tax credit trading allowancance

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REIT is recorded in 17/TR3 and the 20% tax credit in 19/TR3. Can Trading Allowance be claimed against REIT income? SA150 Notes page TRG8 just says 'certain miscellaneous income'. If it can be claimed, can the tax credit still be claimed? For example REIT income of £500 with £100 tax credit, claim trading allowance of £500 reducing the income to £nil but still claim the £100 tax credit.

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By Tax Dragon
22nd Aug 2019 20:52

On what basis?

Aren't they units in an investment trust producing investment income? There may be specific tax rules (and I ain't no specialist in investing... shopping is sooo much more therapeutic - so take this answer as the opposite of authoritative) but that doesn't change what you have. Does it?

Creative question though.

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By fawltybasil2575
22nd Aug 2019 23:16

@kevinringer (OP).

It is in fact potentially the “Property Allowance” category, as opposed to its twin brother “Trading Allowance”, which requires our consideration (the “PID” Income from REITs being its Property Letting and Capital Gains Income, on which the REIT is exempt from tax).

However, the relevant legislation [S.17 and Schedule 3 Finance (No. 2) Act 2017] specifically EXCLUDES “PID” Income (from REITs) from the Property Allowance exemption, hence it is subject to Income Tax in the hands of the individual investor taxpayers.

The Withholding Tax Credit is available in the normal way.


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Replying to fawltybasil2575:
By kevinringer
23rd Aug 2019 09:36

Thanks Basil for clarifying that.

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