IFM28080 - Real Estate Investment Trust : Distributions: administration: quarterly returns and reconciliation: example

Quarterly returns

C must complete and send in a CT61(Z) for each return period in which a PID is paid, and a reconciliation for each accounting period of how distributions made in that period have been attributed.

As none of the February 2015 distribution is a PID, C need not complete a CT61(Z) for QE 31 March 2015 solely on account of the February distribution. The CT61(Z) for QE 31 March 2016 will show PID of 900, for QE 30 September 2016 will show PID of 540, for QE 31 March 2017 will show PID of 630, and for QE 30 September 2017 will show PID of 675.

Reconciliations

No reconciliation is required in respect of pre-entry accounting periods. The reconciliation for distributions paid in APE 31 December 2015 will show the ‘opening balances’ as follows: (a) nil, (aa) nil, (b) 900 (all pre-entry), (c) nil, (d) nil and (e) 100 (all pre-entry). It will show the 800 distribution paid in the AP is all attributed to (b) and the ‘closing balances’ is (a) nil, (aa) nil, (b) 100, (c) nil, (d) nil and (e) 100.

The reconciliation for distributions paid in 2016 will show the closing balances from the previous period brought forward, any amendments to these brought forwards (none in this example), the 1,200 profit for 2015, PIDs of 900 and 540 attributed to (aa) and normal dividends of 250 and 60 attributed to (b). The ‘closing balances’ to carry forward will reflect profits of 2015 and attributions of the distributions paid in the year as follows: (a) nil, (aa) (540), (b) (10), (c) 100, (d) nil and (e) 100.

The reconciliation for distributions paid in 2017 will show the closing balances from the previous period brought forward, any amendments to these brought forwards (none in this example), profits of 2016 and dividends paid in the year. The ‘closing balances’ will be as follows: (a) nil, (aa) (675), (b) 65, (c) 230, (d) nil and (e) 100

This example is summarised in tables in IFM28085 to IFM28095.