Tax return for foreign REIT distribution (capital component)

For a foreign REIT, there are 2 separate distributions announced at the same time, one being an "income component" and another one a "capital component" (from a return of capital). For these distributions, should both be reported under the section "Income from land and property abroad" in Form SA106? Or should the "capital component" be reported elsewhere under CGT? Thank you.

Hi,
UK REITs and non UK REITs are vehicles that allow an investor to obtain broadly similar returns from their investment, as they would have, had they invested directly in property.  In the hands of the shareholder, the profits paid out are known as property income distributions or dividends (PIDs) and are taxable in the same way as profits of a UK property rental business.  
Where Non UK REITs are distributed, the profits and foreign tax deducted are declared in the foreign sections under 'income from land and property abroad', where a foreign tax credit can be claimed. They are not taxed as dividends, but as property income.
Foreign Tax Credit Relief is restriced in a similar way to dividends. It is declared in boxes 17 to 21 of page TR3 of SA100 Page 2 of 3 of tailor your return,  "Did you receive any other UK income, for example, employment lump sums, share schemes, life insurance gains?" 
You can see guidance here:
How to fill in your tax return
Thank you.

Hi HMRC, thank you for your response. I reckon from the reply that the capitol component of a REIT distribution, for which gain is derived from the trust selling off properties, is also regarded as income. Is this correct?

Hi,
UK-REITS and NON UK REITS are vehicles that allows an investor to obtain broadly similar returns from their investment, as they would have, had they invested
directly in property.  
In the hands of the shareholder, the profits paid out are known as property income distributions or dividends (PIDs) and are taxable in the same way as profits of a
UK property rental business.  
Where Non UK REITs are distributed, the profits and foreign tax deducted are declared in the foreign sections under 'income from land and property abroad', where a
foreign tax credit can be claimed.  
They are not taxed as dividends, but as property income.  
Foreign tax credit relief is restriced in a similar way to dividends.
Thank you.

Hi HMRC, Following your replies, I understand any income from NON UK-REITs shall be classified as PIDs and they shall be declared in the foreign sections under 'income from land and property abroad'. In my case, just focus on the foreign part, I have no physical property overseas but have some shares on 6 non UK-REITs from 3 different countries. My question are: (1) The total income excluding tax in GBP shall be put in Box 14 in Page F4 of SA106. Also, the breakdown of the income, including the foreign tax I paid, shall be given in 'Summary of income from land and property abroad'. Am I correct? (3) For Box 15 in Page F4 of SA106, shall I put '0' as I have no physcial property or '6' because I have 6 non UK-REITs? (4) If I disposal of non UK-REITs, shall I put in Box 41 in Page F6 of SA106 in regardless of profits or losses? I tried to read SA106 Notes but I can't get any idea for non UK-REITs. The notes only focus on physical properties instead of non UK-REITs. Thank you for your time.

Hi ,
 

Where Non UK REITs are distributed, the profits and foreign tax deducted are declared in the foreign sections under 'income from land and property abroad' on page F4 (boxes 14 to 32), where a foreign tax credit can be claimed (box 2 on page F1).  They are not taxed as dividends, but as property income.  Foreign tax credit relief is restriced in a similar way to dividends.  A list of tax treaties can be found at : Tax treaties  . Thank you .