British Land (BLND) dividends

[Peltiq]

On 11th November ny non-ISA account with HL was credited with £117.26 as the quarterly dividend for this share. The dividend per share is quoted as having been 7.30p.

On the ex-div date (6th Oct) I held 2008 of these shares which should have paid out £146.58. Could somebody please explain why I only received £117.26?

I assume this had something to do with income tax, which I thought had been abolished for this type of investment a while ago.

Regards

Karen

[Dod1010]

I was paid the dividend at the rate of 5.84p per share, which is what you have been paid as well. The difference between that and the 7.30p which you quote will eventually arrive in my account (an ISA) as a tax credit, as the dividend is paid as a PID. Presumably you will not receive the extra as your shares are not tax sheltered. This is not a tax as such and does not fall within the recent changes to the tax rules for dividends.

You should if you can hold REIT shares in a tax sheltered account such as an ISA or SIPP.

[Jon46]

http://www.britishland.com/investors/di ... and-uk-tax

The company web site sets it all out for those who can reclaim due to their tax position.

As Dod says, REIT best held in a tax shelter if possible, on most platforms/brokers the reclaim process takes about six weeks.

Jon

[OLTB]

The dividend per share is quoted as having been 7.30p.

The dividend paid from my BLND shares - held in a HL SIPP - equated to 7.30p as you mention above. The notation in the reference column was 'PDG CR' if that helps?

Cheers OLTB

[Peltiq]

Many thanks for the replies.

I've sold all my British Land holdings now the situation won't arise again. If I buy it back, it will be in an ISA.

Regards to all

Karen

[Breelander]

... If I buy it back, it will be in an ISA.

Note that ISA providers can differ in the way they reclaim the Tax Credit. To enable the payment to be received free of tax they must segregate their nominee accounts, one for ISA/SIPP holdings, another for taxable holdings. Those brokers who choose (on costs grounds?) to use a single nominee for both will still reclaim the Tax Credit for their ISA customers, but at a later date - usually some time after the payment date.

Bree. (holds BLND in an ISA that gets the tax-free payment)

[Gengulphus]

Just to add that for tax purposes, the payment isn't actually a "dividend" at all - it's a "PID" or "Property Income Distribution", and the fact that the "D" in it stands for "Distribution" rather than "Dividend" reflects that. It's extremely common to refer to such payments as "dividends", and there's generally no harm in doing so for non-tax purposes, but do take care to distinguish PIDs from dividends where tax is concerned. In particular, if you have to fill in a tax return, PIDs should be reported as "Other UK Income", not as "UK Dividends".

It's also worth noting that REITs can pay ordinary dividends as well as or instead of PIDs, including paying both at the same time. For instance, British Land's payment in August was half PID, half ordinary dividend.

Gengulphus

[OLTB]

Morning all

Just a quick note to say that I listened to a podcast last night regarding the potential prospects for British Land and have summarised the interesting comments in the REIT area here viewtopic.php?f=87&t=20467#p265380

As a common HYP holding, I thought it might be of interest.

Cheers, OLTB.