Textual Amendments
F1Sch. 5AAA inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 21
1(1)In this Schedule “collective investment vehicle” means—U.K.
(a)a collective investment scheme,
(b)an AIF,
(c)a company which is a UK REIT, or
(d)a company which is resident outside the United Kingdom and meets the property income condition.
(2)A company meets the property income condition if—
(a)it is not a close company or is a close company but only because it has a qualifying investor as a direct or indirect participator,
(b)at least half of its income is property income from long-term investments,
(c)it distributes all, or substantially all, of its property income from long-term investments and does so on an annual basis, and
(d)it is not liable to tax on that income under the law of any territory in which it is resident.
(3)Paragraph 46 (meaning of “close company”, “qualifying investor” and “direct or indirect participator”) applies for the purposes of sub-paragraph (2)(a).
(4)For the purposes of sub-paragraph (2) “property income from long-term investments” means income deriving from direct or indirect investments in—
(a)land, or
(b)estates, interests or rights in or over land,
which are made on a long-term basis.
(5)In this Schedule “participant” means—
(a)in relation to a collective investment scheme or an AIF, a person who takes part in the arrangements or undertaking constituting the scheme or AIF, whether by becoming the owner of, or of any part of, the property that is the subject of or held by the arrangements or undertaking or otherwise, or
(b)in relation to a company within (1)(c) or (d), a shareholder in the company.
(6)In this Schedule “unit” means—
(a)in the case of a collective investment scheme or an AIF, the rights or interests (however described) of the participant in the scheme or AIF, or
(b)in the case of a company within (1)(c) or (d), a share in the company.
(7)In this paragraph—
“AIF” has the meaning given by regulation 3 of the Alternative Investment Fund Managers Regulations 2013, and
“UK REIT” has the same meaning as in Part 12 of CTA 2010.
2(1)In this Schedule “offshore collective investment vehicle” means—U.K.
(a)a collective investment vehicle constituted as a body corporate resident outside the United Kingdom,
(b)a collective investment vehicle under which property is held on trust for the participants where the trustees of the property are not resident in the United Kingdom, or
(c)a collective investment vehicle constituted by other arrangements that create rights in the nature of co-ownership where the arrangements take effect as a result of the law of a territory outside the United Kingdom.
(2)In this paragraph—
“body corporate” does not include a limited liability partnership, and
“co-ownership” is not restricted to the meaning of that term in the law of any part of the United Kingdom.
3(1)For the purposes of this Schedule the question whether a collective investment vehicle is “UK property rich” at any time is determined by applying the rules in Part 2 of Schedule 1A on the following assumptions.U.K.
(2)The assumptions are—
(a)that (so far as this would not otherwise be the case) the vehicle were a company, and
(b)that a disposal were made at that time of a right or interest in that company.
(3)If that disposal would be regarded for the purposes of Schedule 1A as a disposal of an asset deriving at least 75% of its value from UK land, the vehicle is regarded for the purposes of this Schedule as being UK property rich at that time.
(4)For the purposes of this Schedule the question whether a company is “UK property rich” at any time is determined by applying the rules in Part 2 of Schedule 1A on the assumption that a disposal were made at that time of a right or interest in the company.
(5)If that disposal would be regarded for the purposes of Schedule 1A as a disposal of an asset deriving at least 75% of its value from UK land, the company is regarded for the purposes of this Schedule as being UK property rich at that time.]