IFM04374 - AIFs: Property authorised investment funds (PAIFs): tax treatment of PAIFs and distributions: attribution of distributions - example 2

For an explanation of this example please refer to IFM04370.

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 IFM04376.