As a Real Estate Investment Trust (REIT), British Land is required to distribute 90 per cent of tax-exempt profits from its property rental business as Property Income Distribution or PID. For tax purposes, HMRC requires qualifying property rental profits to be adjusted to reflect capital allowances and other items. The tax qualifying profits may not be the same as the reported accounting profits.
Since we became a REIT, we have paid dividends quarterly, which mirrors our rental cash flows. Over time, our aim is to grow dividends in line with our underlying rental income growth. We do not aim to pay out capital profits or income generated from other sources.
Dividend payments can be made either as PIDs or as a distribution of income from non-qualifying activities, commonly known as non-PIDs. British Land dividends are paid out both as PIDs and Non-PIDs. The split of dividends declared will vary between PID and Non-PID over time.
Find out more by reading our dividend history.
Shareholders should note that the tax treatment of PID and non-PID dividends differs. Profits distributed as PIDs are tax exempt and therefore are potentially fully taxable in shareholders hands as property letting income. PIDs are normally paid out after deduction of basic rate tax at source, which the REIT pays to HMRC on behalf of the shareholder. Certain types of shareholder are tax exempt and receive PIDs without withholding tax.
Non PID dividends are treated as normal dividends.
Read further information on tax.
For shareholders who wish to re-invest their dividends in the company, we are offering a Scrip Dividend Scheme which enables shareholders to receive New Ordinary Shares in place of the cash dividend.
