Hi,
I’ve just had the Warehouse REIT dividend paid in an Invest account and the full amount was paid instead of the normal, less 20% tax, payment.
Please can @Team212 let me know what’s going on?
EDIT: Just looked back and Tritax Big Box REIT was also paid gross on the 6th.
Thanks.
I can concure that my last BBOX div payment was 1,71p. So no 20% tax payment deduction for me either!
Had a reply from T212 support…
The reason why you do not pay tax for both WHR and BBOX dividends is that they are both traded on LSE AIM which makes them locally traded. Therefore, no tax is applied in this case.
Struggling to find any info on what this “locally traded” stuff is all about though.
Not sure what a dividend payment/tax question affecting multiple shares and every user with those shares is doing being marked as account specific. Would appreciate if the above posts and this thread in general could be reinstated to public viewing so it can expand the general community knowledge of REIT taxation.
@Methuselah As you have noticed no tax was applied on the dividend received from Warehouse REIT plc. We would only apply tax on dividends when our execution broker does so and on this occasion, they had a technical issue, which led to the tax not being applied appropriately. We acknowledge the fact that this was an error that is not related to customer activity and has decided not to apply the tax to our clients post-factum. We will cover it on your behalf with our execution broker.
@Air_Addict Regarding BBOX, our intermediary has deducted no tax on its dividend as well. There will be no adjustments to the clients’ accounts in this regard.
@Y.M Thanks for the explanation and T212’s willingness to cover the mistake. Can you confirm that all past dividends with this mistake are covered by you covering this with your broker please? This affects payments going back to at least Nov 2020 for me. Does it affect these stocks for all T212 clients for the life of T212 using the broker?
Can you explain why your explanation doesn’t match the answer I got from support? I’m not filled with confidence when your support team appears to be lying to customers about issues involving tax payments. (Support ticket #805251 if you needed to check it.)
Your explanation does clearly explain why search engines don’t know anything about this “locally traded” stuff though.
We apologize for the provoked confusion. The dividends with BBOX and Warehouse have arrived on your account untaxed since our Intermediary did not apply a tax on them before their allocation to the clients’ accounts.
This is an exceptional scenario for these 2 stocks in particular and we will cover the tax on your behalf and no funds will be deducted from your account in relation to this event.
This one-off event has happened only with the dividends of these 2 stocks and not with the previously paid such.