Important Note
This summary of tax consequences for shareholders is intended to provide only a general outline of the subjects covered. It should neither be regarded as 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.
Following conversion to REIT status on 1 January 2007, dividend payments may comprise a mixture of both Property Income Distribution (PID) and non-PID dividends. The amount of the PID and non-PID elements of the dividend will be shown on the associated tax vouchers.
Non-PID dividend payments
The non-PID element of dividends will be treated in exactly the same way as British Land dividends prior to becoming a REIT and in the same way as dividends received from non-REIT companies.
PID dividend payments
- PIDs are taxable as property letting income in the hands of shareholders who pay tax, but will be treated separately from any other property letting business which shareholders may carry on.
- PID dividend payments will generally be paid out after deduction of withholding tax at the basic rate (22% for 2007/08 and 20% 2008/09 onwards). However, certain classes of shareholder may be able to claim exemption from deduction of withholding tax. Examples of such classes are:
- UK Companies
- Charities
- Local Authorities
- UK Pension Schemes
- Managers of PEPs, ISAs and Child Trust Funds
Forms for claiming exemption from withholding tax on PID dividend payments are provided:
