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HMRC internal manual

Company Taxation Manual

AIFs: Property authorised investment funds (Property AIFs): deducting and accounting for tax from distributions: collection and payment of tax

Collection and payment of tax (regulation 69Z35 SI 2006/964)

Any tax payable in respect of a relevant distribution should be paid over on the same date as the return for which the distribution must be included, is due.

The tax due is the sum of the deductions that the Property AIF must deduct from Property Income Distributions and PAIF distributions (interest).

The tax is due from the Property AIF making the relevant distributions, and it is payable without HMRC having to make any assessment on the Property AIF.

Assessments (regulations 69Z31 & 69Z32 SI 2006/964)

Under regulation 69Z31 SI 2006/964, if the Property AIF has not paid any tax due in accordance with a return by the due date, HMRC may issue an assessment to the manager for it.

Under regulation 69Z32 SI 2006/964, HMRC will also raise assessments where it is believed that there has been a failure to return a relevant distribution, or where they believe that a return has otherwise been made incorrectly. HMRC will estimate the assessment using ‘a best judgement’ basis.

Time limits for assessments (regulation 69Z33 SI 2006/964)

The usual time limits for issuing an assessment to a company apply, including those relating to fraudulent or negligent conduct. Reference to a tax year means one in which the return period in question ends.