Part 4U.K.Real Estate Investment Trusts
IntroductionU.K.
103Real Estate Investment TrustsU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
104Property rental businessU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
105Other key conceptsU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
106Conditions for companyU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
107Conditions for tax-exempt businessU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
108Conditions for balance of businessU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entering Real Estate Investment Trust RegimeU.K.
109NoticeU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
110DurationU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
111Effects of entryU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
112Entry chargeU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets etcU.K.
113Ring-fencing of tax-exempt businessU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
114Maximum shareholdingU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
115Profit: financing-cost ratioU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
116Minor or inadvertent breachU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117Cancellation of tax advantageU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
118Funds awaiting re-investmentU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ProfitsU.K.
119Corporation taxU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
120Calculation of profitsU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
121Distributions: liability to taxU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
122Distributions: deduction of taxU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
123Attribution of distributionsU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gainsU.K.
124Corporation taxU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
125Movement of assets out of ring-fenceU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
126Movement of assets into ring-fenceU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
126ADemergersU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
127InterpretationU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Leaving Real Estate Investment Trust RegimeU.K.
128Termination by notice: companyU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
129Termination by notice: CommissionersU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
130Automatic termination for breach of requirementU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
131Effects of cessationU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
132Early exit by noticeU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
133Early exitU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GroupsU.K.
134Group Real Estate Investment TrustsU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
135Transfer within groupU.K.
After section 171(2)(d) of TCGA 1992 (transfer within a group: exclusions) insert— “; or
(da)a disposal by or to a company to which Part 4 of the Finance Act 2006 applies (Real Estate Investment Trusts);”.
136Availability of group reliefsU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MiscellaneousU.K.
136AConnected personsU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
137Insurance companiesU.K.
In section 212(1) of TCGA 1992 (annual deemed disposal of holdings of certain assets) after paragraph (b) insert— “, or
(c)shares in a company to which Part 4 of the Finance Act 2006 applies (Real Estate Investment Trusts),”.
138Joint venturesU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
139Manufactured dividendsU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
140Penalties for failure to give notice, etcU.K.
At the end of the second column of the Table in section 98(5) of TMA 1970 (penalties) add—
“Section 106 of FA 2006 as modified by Schedule 17 to that Act.
Section 116 of FA 2006.
Regulations under section 116 of FA 2006.
Regulations under section 122 of FA 2006.
Section 130 of FA 2006.”
141Effect of deemed disposal and re-acquisitionU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
142InterpretationU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
143Housing investment trusts: repealU.K.
Section 160 of, and Schedule 30 to, FA 1996 (housing investment trusts) shall cease to have effect (and accordingly—
(a)sections 508A and 508B of ICTA shall cease to have effect,
(b)the amendments of section 842(1)(a) and (e) of ICTA effected by paragraph 2(2) of Schedule 30 shall cease to have effect, and
(c)section 842(1AA) of ICTA shall cease to have effect).
GeneralU.K.
144RegulationsU.K.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
145CommencementU.K.
(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)Section 143 shall have effect in relation to accounting periods beginning on or after the day on which this Act is passed.