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HMRC internal manual

Investment Funds Manual

Property authorised investment funds (PAIFs): Deducting and accounting for tax from distributions: introduction

The first part of this chapter sets out the rules for the deduction of tax that a PAIF is required to make to its investors from each of the distributions:

  • Property income distributions (PIDs);
  • PAIF distributions (interest); and
  • PAIF distributions (dividends).

It also explains when investors should be paid distributions without deduction of tax. See IFM04420.

The second part of this chapter focuses on the statutory requirements that a PAIF will need to satisfy when:

  • paying gross payments and the categories of investors entitled to receive gross payments (IFM04430 and IFM04440);
  • providing certificates of deduction of tax when property income distributions and or PAIF distributions (interest) are made to investors (IFM04450);
  • delivering returns when distributions from which tax has been deducted have been made (IFM04460); and
  • accounting for tax deducted from property income distributions and PAIF distributions (interest) (IFM04470).