Yeah looks like it.
As I said I donât invest in US REITs. But for UK REITs, the income is reported separately from dividends so you pay tax based on your income tax rate. If it is the same for US REIT income and it is counted separate from dividends, then you probably have to pay additional tax on this income, but I donât have the answer for this.
My dad did a lot of building.
In WA Perth, a small plot goes for a million, but a house is thrown up for a few 100k. The land is worth significantly more than the building.
Funny that my family are builders in Mindarie, WA and I love it there but that is a very different market to the UK 
You could buy a plot of land for 20-30 houses for ÂŁ1m in the North and some places south for example.
What a coincidence. Mine are in te western burbs between Freeo and Perth.
If you are a UK tax resident, donât worry about what tax is taken at source. A quick call to HMRC will get the money returned, either by a cheque or a change to your tax code.
I have a similar thing with some shares I have with a US broker that my work uses for the employee share purchase scheme. They tax everything that could be considered a benefit (i.e. difference between what we are buying at and the current market price) at 42% (i.e. max 40% tax bracket and 2% NI), and then I get all the overpaid tax back by paying less tax on my UK income.
If youâre still owed money at the end of the tax year, call them, but itâs probably not worth worrying about before then unless itâs a large chunk of money.
Think I shall, when I have earnt a worthwhile amount.
Thank-you.
Are you tax-exempt? If no, then you donât get it back. Itâs not a capital gain. If youâre above the 20% base tax rate you might even need to pay a higher rate.
Not sure why half-truths or incorrect answers are posted after multiple correct onesâŠ
If youâre referring to me, then no Iâm not tax exempt, and I never said I get it all back.
What I said was that if you call the HMRC and tell them how much tax youâve paid and what your income is, theyâll recalculate it and make sure that any overpayment is returned to you or adjust your tax code if youâve underpaid.
I have done this in several situations, and itâs a very easy process.
I guess you can if your income is under the personal tax allowance, otherwise you canât claim back income tax on income
The trade off is that REITâs donât have to pay corporation tax. So there is more money available to pay dividends.
I would like to see U.K. REITs in an ISA though as you wouldnât have to pay that that if you held the investment in ISA.
I think weâre in agreement, but re-reading her posts suggests she pays 20% basic rate tax on her salary but thinks this should be a dividend and not income. I misinterpreted her original message as her saying sheâs paying 20% tax on this, but thatâs more than she pays on her income, so assumed she was earning below the personal allowance.
Iâd agree that this is taxed as income not a dividend, because it is specifically listed as âProperty Income Distributionâ, so she has probably been taxed correctly in this case. Whatâs more, if this takes her income over ÂŁ50k should might actually need to pay more tax on it.
Hi,
To clarify I earn quite little. Minimum wage but was furloughed before.
This income will be considered as if it was normal taxable income, so in this case you will be able to claim the tax back for anything under the personal allowance.
If you are expecting to not hit the personal allowance including this income and you need the money quickly, itâd be worth giving HMRC a call anyway and letting them know your expected salary, and theyâll sort it out. Unlike tax agencies in other countries, HMRC are actually pretty reasonable and helpful.
Thank-you for the advice.
Itâs 20p
It might not be the only REIT income she gets this year.
I think it more the principle going forward so Sophie is sensible to learn now rather than later 
This is a heartwarming thread - thank you community members for helping each other out! 
Exactly
Yep. Better now than later.
Thank-you everybody for all your explanations, help, and patience.
On a related note to this thread, I am unsure why my post was marked as " Your post was flagged as inappropriate : the community feels it is offensive, abusive, or a violation of our community guidelines." Whether unfounded or not, is any expression of discontent towards Freetrade intolerable? Because the removal of said removed post added to the conversation by providing emotional input and creating heated debate, which is what happens when arguing in person, the censorship is inappropriate. Such intolerance and subsequent suppression of input is worrisome. Regrettably I am not at liberty to add the suppressed comments into the thread in order to add clarity to this comment.