Declaring Property Income Distribution to HMRC

As i have started investing recently, I have dividend income less than 2k and Capital gain less than 12.5k. But as I have a small amount of share in Commercial Property which distribute Property Income Distribution. Now as i am in 40% tax band under PAYE system, where do i have to declare this income to HMRC or it will be already notified by Freetrade ?

As currently the Property Income Distribution is less than 20£ i would not like to pay to external accountant. Any links related to that would be appreciated.

HMRC will never worry about 2 figures. :grinning:

Trading or property allowances are not available for REIT or PID

Here is a Twitter conversation with HMRC regarding this whole issue.

So in nutshell, for PAYE user who do not have to fill self assessment, you have to declare PID to HMRC and its taxable with no allowances. You can either declare it on your Personal Tax account portal or write to HMRC at “Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS United Kingdom”

1 Like

I am pretty sure you get a repayment if you are within your personal allowance since PIDs contain 20% tax credit :wink:

If I keep REITS in ISA account do I still have to report anything?

Declaration is what important. HMRC will work out what to do according to your earnings.

Under personal allowance: repayment.
In 20% tax bracket: no extra tax.
In 40% tax bracket: extra 20% tax of your PID income.

1 Like

You do not have to do anything if you hold it in ISA.

1 Like

I’m relieved, thought I’ve missed sth. Cheers for info @akashmishra20