Dividends

The Company has made arrangements for Equiniti Financial Services Limited to provide an investment account to allow lump sum and regular savings to facilitate the purchase of the Company’s Ordinary Shares. Detail and the forms required for this service can be accessed from the Company’s website or alternatively at: www.shareview.co.uk/dealing. For details of the service please contact: Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA. Shareholder helpline: 0371 384 2030. Equiniti Financial Services Limited is authorised and regulated by the Financial Conduct Authority. As with all stock market investments, the price of shares can go down as well as up and on sale investors may not get back the full amount they invested

REITs, Dividends and UK Tax

The above is a general guide only and shareholders who have any doubt about their tax position should consult their own appropriate independent professional adviser.

The Real Estate Investment Trust (“REIT”) Regulations require a REIT to distribute at least 90% of its exempt rental income (as calculated for tax purposes) as a Property Income Distribution (“PID”).

PIDs are paid out after deduction of income tax at the basic rate, currently 20%. Certain classes of shareholders, including UK companies, charities, local authorities and UK pension schemes may receive PIDs without deduction of withholding tax, if a valid claim is lodged with the Company by a qualifying shareholder. Shareholders who qualify to receive PIDs without the deduction of withholding tax should complete one of the attached forms depending on whether or not you are the beneficial owner of your shareholding or an intermediary. The completed form should be sent to the Company Registrars:

Equiniti
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA

Withholding tax exemption claim forms

Beneficial Owner Declaration of Eligibility for Gross PID Payments from UK REIT - PDF 182 KB

Intermediary Declaration of Eligibility for Gross PID Payments from UK REIT - PDF 182 KB

The content of this section is a general guide only and shareholders who have any doubt about their tax position should consult their own appropriate independent tax adviser.

Dividends paid by REITs: PID/Non-PID

The Company is a REIT. As a result it does not pay UK direct taxes on income profits and capital gains from its property and rental business (“Tax Exempt Business”), provided certain conditions are satisfied. Instead, the Company is required to distribute to Shareholders at least 90% of the income profits of the tax Exempt Business (as determined by the legislation) arising each accounting period. This obligation is fulfilled by way of a PID, which can be distributed in cash or as New Shares and (with some exceptions) will in either case be subject to withholding tax.

Corporation Tax is payable in the normal way in respect of profits and gains from other parts of the Company’s business (the “Residual Business”) and a dividend relating to the Residual Business (as determined by the legislation), or non-PID is treated for UK tax purposes as a normal dividend (whether in cash or New Shares).

The following paragraphs outline the main aspects of the tax treatment of PIDs and Non-PIDs in the hands of a UK tax resident Shareholder.

Taxation of PIDs

Taxation of NON-PIDs

South African (“SA”) shareholders

The following paragraphs are intended as a general guide only and constitute a high-level summary of PHP’s understanding of current SA tax law and practice based on published guidance to date, each of which is subject to change, possibly with retrospective effect.

These paragraphs only apply to shareholders who are resident in South Africa for SA tax purposes, who hold their PHP ordinary shares as investments and who are the absolute beneficial owners of such ordinary shares. These paragraphs do not apply to certain classes of shareholders, such as share-dealers, collective investment schemes and persons who have acquired their ordinary shares by virtue of office or employment.

The following paragraphs are not advice and should not be relied upon as such. SA shareholders who are in any doubt about their tax position should consult their own professional tax advisor without delay, particularly concerning their tax liabilities on PIDs, whether they are entitled to claim any repayment of tax, and, if so, the procedure for doing so.

For a SA shareholder, the cash PID element of the dividend will be exempt from SA income tax but will constitute a dividend for SA dividend tax purposes, as it will be declared in respect of a share listed on the exchange operated by the JSE.

SA dividend tax is levied at a rate of 20% on any cash dividend paid by a foreign company in respect of a JSE-listed share. SA dividend tax will therefore be withheld from both the PID and non-PID element of the final dividend at a rate of 20%, unless a shareholder qualifies for an exemption and the prescribed requirements for effecting the exemption are in place by the requisite date. Certain SA shareholders may also qualify for a reduction to 5% (being the difference between the SA dividends tax rate of 20% and the effective UK withholding tax rate of 15% in terms of the UK/SA double taxation treaty) if the prescribed requirements for effecting the reduction are in place by the requisite date.

Where a cash dividend in respect of a JSE-listed share is paid to a non-resident, for SA tax purposes, no SA dividends tax will apply provided that the prescribed requirements for effecting the exemption are in place by the requisite date.

Sale of REIT shares by UK and non-UK resident shareholders

From 6 April 2019, the gain on sale of shares of a UK property rich company will generally be within the charge to UK tax for all shareholders, whether UK resident or non-UK resident, subject to possible tax treaty relief for non-UK residents or any exemption for tax exempt investors.

A company is considered to be UK property rich if 75% or more of its gross asset value is derived from UK land. Although there is generally a 25% ownership threshold for a disposal of such an indirect interest in UK land, this is disapplied in the case of certain Collective Investment Vehicles including REITs. For this reason, we advise shareholders to take professional tax advice in establishing whether a disposal of shares would be subject to these rules.

Gains realised by non-UK resident individuals must generally be reported to HM Revenue & Customs within 30 days of the disposal.

SA Securities Transfer Tax

Where there is a sale or transfer of the shares listed on the JSE, SA securities transfer tax may be applicable provided there is a change in beneficial ownership of the shares and none of the exemptions apply.

Disclosure

Shareholders who are in any doubt about their tax position, or who are subject to tax in a jurisdiction other than the UK, should consult their independent professional adviser, particularly concerning their tax liabilities on PIDs to determine whether they are entitled to claim any repayment of tax, and, if so, the procedure for so doing.

The Company’s registrar is Equiniti. In the event of any queries regarding your holding of shares, please contact the registrar free of charge on 0371 384 2030 (lines are open 8.30 a.m. to 5.30 p.m. Monday to Friday), or in writing to: Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA. Changes of name or address must be notified to the registrar in writing.

A quick and easy share dealing service is available to either sell or buy PHP shares. To deal online or by telephone all you need is your shareholder reference number, full postcode and date of birth. Your shareholder reference number can be found on your latest dividend statement. For further information on this service, or to buy and sell shares, please contact Equiniti customer services on 0371 384 2030 (8.00 a.m. to 6.00 p.m. Monday to Friday) or access www.shareview.co.uk/dealing.