Stepenwolf
02 Jun 2015
Re: Dividend reduction Hi BayleaThat sounds familiar - I transferred some Unit Trust ISAs from Fidelity to iii myself, hoping to make savings from iii lower charges. However since then have had nothing but trouble, innefficiency and mistakes from the iii team. I was going to import my Halifax investment trust holdings (including SLI) into iii too, but the litany of mistakes and slow response rate from iii has decided me to go the other way and switch out from iii to Halifax !
PJ Foster
02 Jun 2015
Re: Dividend reduction Hi Baylea,I was unable to say what I intended about that response you received - because the 'iii bad language filter' prevented me. Clearly the iii support team are clueless. I've just set the following message myself to the iii team:[ Hi iii,Further to my earlier message, I've discovered the answer in the HMRC's guidance to ISA managers. You can see it here:[link] a REIT in an ISA, the ISA manager (that's Interactive Investor) can arrange with the company (SLI) to have the dividend paid gross, with no tax deducted. That is what you have done for other REITs such as British Land and Hansteen Holdings. I notice that other ISA managers have already arranged this for their clients with respect to Standard Life Property Investment Trust and customers received the dividend in full.If you have not arranged this in advance, then the guidance from HMRC for ISA Managers (Interactive Investor in this case) is that: "As an interim measure, managers receiving a PID net can reclaim the tax in respect of their ISA investors from SSO." (See section 13.1b of the document I've linked to.)Please can you confirm that:a) You are claiming back the tax deducted from my dividend (and for your other ISA customers owning SLI shares)?b) What the anticipated time scale is?c) You will arrange with Standard Life Property Investment Trust to have dividends paid in full, in furture?Regards,Your Customer ]I'll post the response when it comes.....Cheers,
baylea
02 Jun 2015
Re: Dividend reduction Thanks for that StepenwolfI've got this response from iii today: 'I have raised this with our Dividends team to find out why the previous dividend in February 2015 was not taxed but the most recent Standard Life dividend was. As soon as I have a reply I will send a further message to advise of their update. Thank you for your patience while I deal with this for you. '
Stepenwolf
02 Jun 2015
Re: Dividend reduction Hi,I have SLI in an ISA with Halifax and got the full dividend of 1.161.I think iii are rubbish by the way
highsnlows
01 Jun 2015
Re: Dividend reduction This is all because SLI became a REIT in January this year. The tax consequences are quite different. HMRC treats a REIT dividend as if you are receiving rental income, and hence they deduct 20% nominally from the rent (dividend) you recieve. Also any capital gains do not have the capital gains exemption allowance (2015/16 = £11,100) and are subject to capital gains tax on the total gain. I am not a tax expert and you should seek specialist advice to be certain.HnL
baylea
01 Jun 2015
Re: Dividend reduction Oh so I will get a similar responce from iii. It would be nice to hear if other companies are behaving the same way.
Dragons teeth
31 May 2015
Re: Dividend reduction Baylea my response from Iii was unhelpful - it's been taxed at source as agreed with SLI " We will not be returning the tax to your ISA, if you wish this to be claimed back you need to contact HMRC. We have paid this dividend correctly as per Standard Life's instructions" I'm not very happy with this distinctly frosty response from Iii and will consider my reply.Meanwhile I would be interested in reading which ISA providers have paid the full amount and any response others have received from III.
baylea
29 May 2015
Re: Dividend reduction I asked iii this:'I was expecting a dividend of 1.161 pence per share from STANDARD LIFE PROPERTY INVEST (LSE:SLI) on the 26th. But only got 1 pence a share. Has some tax been taken off by mistake? Can you please explain?'Their responce was:'There was 20 percent tax deducted at source for the Standard Life dividend, this took the advertised rate from 1.161 to what we paid out 0.9288 and we rounded the amount up to 1 pence. 'So have iii made a mistake or has something changed to do with the tax? My Feb dividend didn't have a 20% reduction.
Dragons teeth
28 May 2015
Re: Dividend reduction Pj, over on Advfn SLI board.Highslows sent Iii an email today saying " I believe I'm due 20% , can you confirm when I'll get it." Hardly a princely sum but thought I'd get my preemption in first.!
highsnlows
28 May 2015
Re: Dividend reduction Tax Reclaim .... in 3 weeks via Interactive Investor, I think that's a little optimistic. Tax Reclaim's from other investments are averaging 2 months. If you haven't received your Tax Reclaim in a months time start pestering them, that's what I do.The trend over the last month is a little worrying, if it continues then my stop will get triggered.HnL
PJ Foster
28 May 2015
Re: Dividend reduction What other board?Curiously,
Dragons teeth
28 May 2015
Re: Dividend reduction Thanks jonwig, your comments on the other board were very useful, I'll await my 20% turning up in my ISA
jonwig1
28 May 2015
Re: Dividend reduction Should be done automatically by your ISA provider - say 3 weeks.
Dragons teeth
27 May 2015
Re: Dividend reduction As I understand it it's because it has converted to a REIT and dividends are then taxed like property letting income I.e. Basic 20%. My divi in my ISA has just appeared at 20% down . Anybody clear just how you reclaim the tax in an ISA and can you reclaim full 20% or do you pay 10%?
PJ Foster
27 May 2015
Re: Dividend reduction Oh - for British Land and Hansteen Holdings - I get the full amount at once with iii. I wonder why this is different.Cheers,
