IFM04380 | AIFs: Property authorised investment funds (PAIFs): tax treatment of PAIFs and distributions: company tax return

General

As with other authorised investment funds, PAIFs are within the charge to corporation tax and must submit a single company tax return after the end of each accounting period.

The entries on the corporation tax return form should relate only to the residual business of the PAIF, that is everything not within the tax-exempt ring fence.

However, whilst the return to be delivered is the same as that required from other corporate bodies, the following additional documents are required.

Documents to be included with company tax return (regulation 69Z25 SI 2006/964)

The manager must include documents A and B in its company tax return:

Document A is a calculation of the net income of the tax-exempt part of the business and of the residual part of the business (regulations 69Z1 to 69Z3 SI2006/964).

Document B is a reconciliation between:

• the net income of the company (see regulation 69Z SI 2006/964 and IFM04320); and

• the total income shown in the distribution accounts as attributed (to the three different categories of distribution) - regulation 69Z14 (see IFM04370).

In addition to submitting a company tax return the PAIF must also submit returns detailing tax deducted from certain distributions, as described at IFM04440.

Where should company tax returns be submitted to?

Company tax returns should be submitted to HMRC’s Collective Investment Schemes Centre.