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HMRC internal manual

Company Taxation Manual

AIFs: Property authorised investment funds (Property AIFs): deducting and accounting for tax from distributions: submitting returns

Requirement to make a return (regulation 69Z29 SI 2006/964)

Where a Property AIF makes a relevant distribution (i.e. one which includes sums attributed to property income distributions (PIDs), or to PAIF distributions (interest), or both) to its participants it must make a return for the return period in question. Such returns should be made using form CT61.

Returns should be made for each return period falling within the accounting period inwhich a relevant distribution is made. The return periods in question are:

  • those ending on ‘quarter days’ – i.e. 31 March, 30 June, 30 September and 31 December’
  • any shorter period which:
    • starts on the first day of the accounting period and ends with the first, or only, quarter day in that accounting period,
    • begins immediately after the last or only quarter day in that accounting period and ends on the last day of that accounting period, or
    • is an accounting period which starts and ends within a quarter.

The manager must make the return for the Property AIF within 14 days of the day immediately following the end of the return period, and the return must show:

  • the amount of any relevant distributions made during the return period, and
  • the amount of tax (if any) payable in respect of those payments.

When submitting its return for the return period which ends on the last day of the accounting period, the manager must include a reconciliation statement showing in relation to any distribution made during the accounting period amounts attributable to each of the following:

  • property income distributions up to the amount of the net income (tax exempt),
  • PAIF distributions (interest) up to the pre-distribution amount, and
  • PAIF distributions (dividends).

Property AIF’s duty to submit an amended return (regulation 69Z35 SI 2006/964)

If the manager of the Property AIF becomes aware that a return delivered in accordance with the regulations contains any error, including anything omitted which ought to have been included, or anything included that ought not have been, then it must deliver an amended return to HMRC without delay.

On receipt of an amended return HMRC will issue any assessments required or make any adjustments or set-offs as necessary to ensure that the correct tax (and, if appropriate, interest) is charged.

Where should returns and amended returns be sent to?

All returns and amended returns should be sent to:

Eric McLennan
Authorised Investment Funds Centre
Local Compliance Eastern England
Concept House
5 Young Street
S1 4LB