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HMRC internal manual

Company Taxation Manual

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HM Revenue & Customs
Updated
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AIFs: Property authorised investment funds (Property AIFs): tax treatment of Property AIFs and distributions: attribution of distributions- example 2

For an explanation of this example please refer to CTM48839.

  ### Income and expenditure ### Total ### Notes ### PID ### PAIF dist (Interest) ### PAIF dist (Divs)
             
  Rental income 18,000 1 18,000    
  Income from ancillary services 2,000 2 2,000    
  Income from currency hedge 3,000 3 3,000    
  Cost of finance for properties (5,000) 4 (5,000)    
  Property management costs (6,000) 5 (6,000)    
  Repairs (1,500) 6 (1,500)    
  Cost of ancillary services (1,200) 7 (1,200)    
  Cost of currency hedge for overseas rent (300) 12 (300)    
  Depreciation of plant and machinery (500) 8 (500)    
  Property income distributions from UK-REIT shares 8,000 10 8,000    
  Property (or undifferentiated) distributions from shares in overseas UK-REIT equivalents 5,000 11 5,000    
  Cost of currency hedge on overseas (UK-REIT equivalent) shares (100) 12 (100)    
  NON -PID dividends from UK-REITs 250       250
  Dividends from other UK companies 340       340
  Dividends from overseas companies (not UK-REIT equivalent or identified as “non- PID type”) 90     90  
  Interest on income from deposits and bonds etc 2,600     2,600  
             
  Investment management charge (1,500) 13 (1,300) (200)  
             
  PBT 23,180   20,100 2,490 590
  ### Adjustments   14      
  Depreciation     500   (500)
  Shadow capital allowances (must use max available)   (200)   200  
             
  Total 23,180   20,400 2,490 290

See notes at CTM48842