RE: Tax on dividends from REITs11 Jun 2024 15:38
PeterWalmsley
There are 4 types of dividends a company can pay including REITs
Ordinary dividend, taxed at 8.75% for basic rate tax payers with £500 tax free
Capital repayment, taxed as capital gain, first £3000 tax free
Interest dividend taxed as interest like bank or building society interest, 20% basic rate tax payer, first £1000 tax free
PID taxed at 20% for basic rate tax payers, this tax is withheld i.e. taken on payment except in ISA or SIPP, if for some reason you should not be paying this tax e.g. below tax threshold I believe you can claim this back. All ISAs and SIPPs should not withhold this tax,
Each is in a separate pot for tax return but all except capital gains below £3000 are added to income to determine top tax band. CGT taxed after fist £3000 pa at 10% for standard rate tax payers, 20% higher rate.
All these tax free in ISA or SIPP
From my records I have have SUPR paying all PIDs except one which was Ordinary dividend in the last few years.
Expect this to change/go up under new Labour government.