Real Estate Investment Trust Status
On 31 December 2014 the company converted to a Real Estate Investment Trust (REIT). REIT status offers the Company significant benefits, as detailed in the Notice of General Meeting issued in November 2014.
Impact on dividends
The first REIT entitlement was in respect of trading for the half-year to 30 June 2015, and was paid on 29 October 2015.
Dividend entitlements may be composed of two elements:
Non-PID Dividends element will be treated in exactly the same way as dividends prior to becoming a REIT and in the same way as dividends received from non-REIT companies. Accordingly a tax credit of 10% will be deemed to have been deducted from the non-PID dividend payment.
Property Income Distributions (PIDs) will generally be paid out after deduction of withholding tax at the basic rate (currently 20%).
Certain categories of shareholder can claim exemption from withholding tax on their PID entitlement. Examples of such classes of shareholders are:-
- UK companies
- Local Authorities
- UK Pension Schemes
- Managers of PEPs, ISAs and Child Trust Funds
Individual private shareholders will NOT be eligible to claim exemption from deduction of withholding tax.
Shareholders who wish to claim exemption from withholding tax on PID dividend payments should complete one of the forms available on the link below (there are separate forms for use by shareholders and intermediaries acting on behalf of shareholders).
The completed WHT exemption forms should be submitted to the Company's Registrars, Equiniti Limited, Dividend Planning Team, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA United Kingdom.
Note: WHT forms are deemed to be 'evergreen'.
Please click the links below to access the following documents:
- Notice of General Meeting for REIT conversion November 2014
- REIT declaration form - intermediary
- REIT declaration form - beneficial owner
Sale of shares in Capital & Regional plc by UK and non-UK resident shareholders
All shareholders, including from 6 April 2019, non-UK resident shareholders in Capital & Regional plc, (“the Company”) will be within the charge to UK tax on gains arising from the sale of their shares in the Company. Certain investor classes may qualify for exemption and Tax Treaty relief may also be available for non-UK resident shareholders.
Non-UK resident shareholders have the option of using original cost or market value at 5 April 2019 as their tax basis. The closing price of the Company’s shares on 5 April 2019 was £0.260 per share.
For disposals of shares in the Company from 6 April 2019, non-UK resident individuals must comply with new compliance requirements. This includes a requirement for the individual to submit a return to HMRC within 30 days of making a disposal of the Company’s shares.
There is no change to the notification requirements for disposals of the shares in the Company by UK resident individuals who should continue to notify the disposals to HMRC on their tax return in the normal way.
Please refer to HMRC’s website here for further information.
The above summary is based on Capital & Regional plc’s understanding of current UK tax law and practice which are subject to change. It does not constitute advice and Capital & Regional plc does not accept liability for any loss suffered arising from reliance on this summary. Shareholders should seek their own professional advice.