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HMRC internal manual

Guidance on Real Estate Investment Trusts

HM Revenue & Customs
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Distributions: administration: attributions and reconciliation: summary of examples


The tables on this page and at GREIT08085 and GREIT08090 summarise the examples in GREIT08075 and GREIT08080.

Reconciliation for a.p.e. 31 December 2009

Following on from the reconciliation for the previous accounting period (see GREIT08085), the reconciliation for distributions paid in thenext accounting period, ending 31 December 2009, would then look like the table below.

Category reserves b/f adjust-ments to b/f allocate 2008 profits 31.12.08 final balance March    
2009 distribution Sept 2009 distribution reserves c/f          
(a) (540)   1,170 630 (630) (675) (675)
(b) (10)   200 190 (50) (75) 65
(c) 100   130 230 -   230
(d) -       -   -
(e) 100     100     100
totals (350) - 1,500 1150 (680) (750) (280)

The first column is the reserves brought forward from the first table of the 2008reconciliation.

The second column shows any adjustments to the reserves brought forward (none in theexample)

The third column shows how the full year profits of 2008 are divided up between Categories(a) to (c).

The fourth column works out the reserves in each category after the 2008 profits areincluded. This will reconcile to the submitted tax returns for the REIT for the year ended31 December 2008. C demonstrates that it has met the 90% dividend requirement for 2007 asthe balance carried forward in category (a) is less than the dividend obligation for 2008.

The fifth column shows how the final distribution for profits of 2008 is attributedbetween Categories (a), and (b).

The sixth column shows how the interim distribution for profits of 2009 is earmarked.

The final column shows how the reserves stand in the year end reconciliation. As theprofits for the year to 31 December 2009 have not been struck, they do not feature in thereconciliation of distributions paid in the year.