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Could somebody please explain to me why half of my divi has a deduction of 20%. I hold 12000 shares and I received two entries on my Isa account one for 12000 shares �90.60 and the other for12000 shares �72.48
If they are in an ISA you shouldn't have the tax deducted. I have just had a similar experience with Warehouse REIT. A nightmare to explain to my broker, but they claimed it was the companies fault for their failure to take notice of a request to pay the dividend without tax deduction. The broker then has to put in a claim, but I can't say I feel confident. I have quite a few REIT's in my ISA, and this is the first problem. Having said that, I haven't received yesterday's Divi yet.
adv11 - Thank you very much for your answer. I find it all a bit baffling, I have been receiving divs every 3 months from Medicx and this is the first time it has happened.
Definitely get in touch with your broker. It's times like this you find out if they are any good or not. I am expecting the same problem as you. I had 8 dividends all paid on time on Thursday, but not MXF, which isn't a good sign.
Finally received my dividend today - with tax taken off. Still waiting for my broker to something about the Warehouse Reit divi from three weeks ago. This is starting to get annoying, might have to rethink where I invest my next ISA money. These REITs are worthwhile if we get the full dividends, otherwise they are not.
I have just checked my ISA holding and have had the divi paid in TWICE, once gross and once net!!! Will advise my platform tomorrow. Medicx have problems this time round! Thanks for alerting me.
Just to clarify - in an ISA you should have received two dividends last Thursday of 0.755p each. Those of us who have wrongly paid tax will have received one of 0.755p and one of 0.604p. - which is the tax taken off the PID part. This quarterly dividend will comprise 50% (0.755p) Property Income Distribution ("PID") and 50% ordinary dividend (0.755p).
Discovered that now they have UK regd REIT status, one divi will be on earned income and be paid gross to your ISA, the other will be on property income and be paid net of tax, even to your ISA!
I did a lot of googling yesterday about this and I don't believe this. Quotes from various pages I found - .....If you hold a REIT in an ISA it is completely tax-free. The REIT is exempt from corporation tax and the investor doesn�t have to pay tax on dividends because of the ISA wrapper ....You do not pay tax on PIDs held within tax sheltered accounts.However, unlike ordinary dividends that are paid gross (i.e. with no tax deducted), PIDs are generally paid with 20% tax deducted.This means the tax already paid needs to be clawed back.Your tax-sheltered account should be issued with a 20% tax credit associated with your PID income, which the company that runs your ISA, CTF or pension should use to reclaim the tax paid from the taxman. Do watch to ensure your PID tax is being reclaimed by your broker, as sometimes they forget. It can take 4-6 weeks after the PID is credited to your account for the reclaimed tax to turn up as cash. I�ve heard that brokers can ask for PIDs to be paid gross to shareholdings in tax shelters, but I�ve no knowledge as to how widely this is being done.
Just e.mailed Medic X and they were very helpful (although can't give official advice of course). If the shares are in an ISA, the broker should have registered them as such and would have been paid tax free. So it is now down to the broker to reclaim the tax paid from the company.
I've have MXF in a SIPP and have just spoken to my broker - Barclays who also confirm that the 20% tax will be claimed back and will appear in my account in 4-6 weeks. This all comes about because of MXF's change of status to a REIT last October. I can't help but think that this has something to do with the price decline over the last few months.