IFM05410 - Investors in property authorised investment funds (PAIFs): investors within the charge to corporation tax: Property income distributions (PIDs)
For corporate tax payers, under regulation 69Z18 SI 2006/964, PIDs are generally charged to corporation tax as profits of a property rental business. This is unlike normal company distributions, which are exempt from tax in the hands of most UK companies. »Ê¹ÚÌåÓýapp PID will, in general, be paid without deduction of tax to persons within the charge to UK corporation tax (regulation 69Z24 SI 2006/964).
»Ê¹ÚÌåÓýapp exception to that treatment is where the recipient is a member of Lloyd’s or a financial trader, when the PID is treated as a receipt of their trade.