Tax Return Query
Discussion
I have tried the tax office but whilst usually good they're clueless on this item.
Own a flat on which we also own part of the freehold. As such we receive an annual payment of a portion of the ground rent. Tax is deducted before been paid to us and it's titled a dividend.
Where the hell do I place this on my tax return?
Own a flat on which we also own part of the freehold. As such we receive an annual payment of a portion of the ground rent. Tax is deducted before been paid to us and it's titled a dividend.
Where the hell do I place this on my tax return?
Sir Bagalot said:
I have tried the tax office but whilst usually good they're clueless on this item.
Own a flat on which we also own part of the freehold. As such we receive an annual payment of a portion of the ground rent. Tax is deducted before been paid to us and it's titled a dividend.
Where the hell do I place this on my tax return?
From what you've written I'm going to guess that:Own a flat on which we also own part of the freehold. As such we receive an annual payment of a portion of the ground rent. Tax is deducted before been paid to us and it's titled a dividend.
Where the hell do I place this on my tax return?
a) The freehold is owned by a Limited Company.
b) You own shares in that company.
c) The tax (that has been paid) that you refer to is Corporation Tax [on the profit the Ltd Company has made].
Your income therefore is dividend income rather than property related income and needs to go into the Dividends section ("Dividends from UK companies. The amount received:").
The tax you will incur will be dependent on what other dividend income you have.
UpTheIron said:
Sir Bagalot said:
I have tried the tax office but whilst usually good they're clueless on this item.
Own a flat on which we also own part of the freehold. As such we receive an annual payment of a portion of the ground rent. Tax is deducted before been paid to us and it's titled a dividend.
Where the hell do I place this on my tax return?
From what you've written I'm going to guess that:Own a flat on which we also own part of the freehold. As such we receive an annual payment of a portion of the ground rent. Tax is deducted before been paid to us and it's titled a dividend.
Where the hell do I place this on my tax return?
a) The freehold is owned by a Limited Company.
b) You own shares in that company.
c) The tax (that has been paid) that you refer to is Corporation Tax [on the profit the Ltd Company has made].
Your income therefore is dividend income rather than property related income and needs to go into the Dividends section ("Dividends from UK companies. The amount received:").
The tax you will incur will be dependent on what other dividend income you have.
b - Correct
c - Incorrect
I've looked at the certificate again and it says the amount shown in box 2 below 1 have deducted the income tax shown in box 3,
and that this tax has been or will be paid by me.
It does however say Nature of payment - INTEREST
So I might treat it as an interest payment now that had tax deducted
Payment from share of ground rent as 'interest' sounds very odd.
You didn't loan money to the Mngt company?
If you're being paid a straight service fee or other fee from Mngt co - you could put it in the same box as income from the property.
If stated as a dividend from a UK company then roll it up with any other dividends you have.
Note : if u are a director of the Mngt company you will likely need to declare that
You didn't loan money to the Mngt company?
If you're being paid a straight service fee or other fee from Mngt co - you could put it in the same box as income from the property.
If stated as a dividend from a UK company then roll it up with any other dividends you have.
Note : if u are a director of the Mngt company you will likely need to declare that
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