BCPT (BMO) Anything I should know regarding taxes?

Hello, I’m sorta confused about something when I was browsing this category, is BMO Commercial Property Trust REIT? I currently hold 27 shares and I plan to get more, obviously I will receive dividends that I don’t need to do any tax returns due to £2000 allowence but I’ve read there’s the PID that comes with REITs? Is BMO one of them and if so, how do I know when I receive PID and is it something that has to be done as tax return?

Sorry for the silly questions here.
Thank you!

No they’re taxed just like any other shares. So you have your annual dividend allowance & capital gains allowance.

Best advice is generally to hold in an ISA though, allowances are prone to change over time but most advice suggests that ISA’s are pretty much safe from the hands of the government

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Thank you, got myself slightly worried I got myself into more stuff to do to ensure I don’t have taxman coming over knocking on my door out of the blue.

Appreciate it!

Not 100% correct. It depends on the dividend classification, i.e. PID or non-PID.

There’s a decent post explaining it on British Lands website here:

https://www.britishland.com/investors/dividends/reits-dividends-and-uk-tax

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How can I check the dividend classification of BMO? Is that something I can find on their site?

To further complicate matters, they’ll probably pay out both types!

Are you a basic rate tax payer? If so they take a withholding tax of 20% at distribution, so you’ll be covered.

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I am indeed, then that should all be covered and makes sense.
Thank you for your help!

Good news!

I think Assura might have covered this in more detail then British Land, so worth a read if you want to over familiarise yourself with the rules!

https://www.assuraplc.com/investor-relations/shareholder-information/reit-dividends-and-uk-tax

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It certainly does, it makes much more sense reading their info, once again thank you!

Yes, they changed it a few months ago: “The trust elected into the UK REIT regime from 3 June 2019.” from their website.

Agreed, my answer lacked a bit of detail. My understanding is that you have to opt-in to non-PID’s though?

Did a bit of research and found that if REIT is in ISA account then I don’t have to pay taxes for that. Anyone who perhaps has BCPT or REIT could confirm that’s the case?

REIT truly feels like a pain in the ass and overwhelming for a complete beginner like me.

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Correct, ISA is the way. This article might help https://www.sharesmagazine.co.uk/article/reducing-dividend-tax-the-reit-way

However REITS don’t appear to be available inside the ISA in Freetrade right now. Presumably because of this tax complication, Freetrade would need to be able to inform the REIT that distributions should be paid gross instead of net. In my opinion, I would simply wait for them to be available in the ISA.

ISA’s make everything easier.

Thank you! That makes it clear enough that I really have no desire to play around with REITs at this moment…

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Looks like they will review how to support REITs in the ISA after migrating to the new platform

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