REITs and PID at T212

[Momchil.G]

Hey, @1anrs

@1anrs

If you buy a REIT in your T212 ISA, just as an example Supermarket REIT, how does it work with the Property Income Distribution (PID) Dividend/Tax? Does the dividend get paid 100% into the account because the ISA has already been taken into account? Does it get paid 80% with T212 having to re-claim it to pay into your account on a later date? Or does the tax not get reclaimed at all by T212?

We pay property income distributions in 100% gross amount with 0% tax to ISA shareholders. On the other hand, such dividends are taxed 20% if held in an Invest account.

@1anrs

Also, have I understood correctly that if you have already added your entire £20,000 for the ISA tax year that you will then have to pay the PIDs anyway? (I.e. it is not counted in the same way as the dividends from other stocks because it’s classed as a “property tax”?).

There is a property allowance of up to £1,000 that you can read more about on HMRC’s website here. Still, if this doesn’t quite answer your questions, it will be best to contact them through their helpline.