SolvedIFM04372 | AIFs: Property authorised investment funds (PAIFs): tax treatment of PAIFs and distributions: attribution of distributions - example 1
From HM Revenue & Customs · Investment Funds Manual
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) | |
| Accountancy income | 23,180 | 20,100 | 2,490 | 590 | |
| Adjustments | 14 | ||||
| Depreciation | 500 | (500) | |||
| Shadow capital allowances (must use max available) | (800) | 800 | |||
| Total | 23,180 | 19,800 | 2,490 | 890 |
See also Notes at IFM04376.