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Tax withheld from PID in SIPP

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Noddingdonkey
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Joined: April 30th, 2018, 3:03 pm

Tax withheld from PID in SIPP

#135790

Postby Noddingdonkey » April 30th, 2018, 3:07 pm

Is anyone else still encountering problems with "NOT SO" Smart Investor. They keep deducting tax from my REIT PID distributions paid into my SIPP.
AFAIAA PID distributions paid into UK pension funds are to be paid gross. Has anyone here managed to sort out this problem with them?
ND

Alaric
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Re: Tax withheld from PID in SIPP

#135795

Postby Alaric » April 30th, 2018, 3:37 pm

Noddingdonkey wrote:AFAIAA PID distributions paid into UK pension funds are to be paid gross. Has anyone here managed to sort out this problem with them?


If they pool SIPP, ISA and taxed account holdings into one nominee account, they are going to receive PIDs net of tax. What they ought to be doing is reclaiming tax and crediting accounts at a later date. It's lower quality administration than having the gross accounts in separate nominees, but perhaps you get what you pay for.

It's incorrect administration if they never credit back the tax and worthy of a formal complaint.

Breelander
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Re: Tax withheld from PID in SIPP

#135799

Postby Breelander » April 30th, 2018, 3:48 pm

Took far too long for Smart Investor to sort out the reclaim of tax on PIDs, but it's working for me now. Being a pooled nominee account (unlike the old Barclay Stockbrokers system) the tax will always have to be deducted initially, but the mechanism to reclaim seems to (finally) be in place.

I have had the tax reclaimed for all my BLND PIDs to date.

Noddingdonkey
Posts: 4
Joined: April 30th, 2018, 3:03 pm

Re: Tax withheld from PID in SIPP

#135802

Postby Noddingdonkey » April 30th, 2018, 4:02 pm

Thanks Breelander, Does the 2mechanism" you describe need any input from me or does it eventually happen automatically?
ND

Breelander
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Re: Tax withheld from PID in SIPP

#135808

Postby Breelander » April 30th, 2018, 4:28 pm

Noddingdonkey wrote:Thanks Breelander, Does the 2mechanism" you describe need any input from me or does it eventually happen automatically?
ND


Oops - typo :) (forgot the shift key on the initial " of "mechanism"?)

Mine arrived with no action on my part (besides having registered a complaint a year ago).

Noddingdonkey
Posts: 4
Joined: April 30th, 2018, 3:03 pm

Re: Tax withheld from PID in SIPP

#135812

Postby Noddingdonkey » April 30th, 2018, 4:44 pm

oops! fat finger.....
many thanks for your responses, I've let them know so lets see how long it takes them to react.
ND

kbeioley
Posts: 1
Joined: October 17th, 2018, 11:30 am

Re: Tax withheld from PID in SIPP

#174392

Postby kbeioley » October 17th, 2018, 11:37 am

Hi,

I am an FT journalist looking into Smart Investor issues including incorrect taxation on Reit PIDs and missing dividend payments. I'm looking for any info on this asap so please do email me on kate.beioley@ft.com or private message me,

Thanks!
Kate

PinkDalek
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Re: Tax withheld from PID in SIPP

#175435

Postby PinkDalek » October 21st, 2018, 11:35 pm

kbeioley wrote:I am an FT journalist looking into Smart Investor issues including incorrect taxation on Reit PIDs ...


Breelander's reply, dated 30 April 2018, suggests there is no "incorrect taxation on Reit PIDs". Merely delays until they sorted out the procedures.

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