(1)Business of a class listed in the table in subsection (2) is not property rental business.
(2)This is the table—
| Class | Description |
|---|---|
| Class 1 | Incidental letting of property (whether in the United Kingdom or elsewhere) which is held in connection with a trade in property. |
| Class 2 | Letting of property which is held for use for administrative purposes in carrying on property rental business but is temporarily surplus to requirements for those purposes, so long as— (a) the space let is small compared to the space occupied for administrative purposes, and (b) the letting is for a term of not more than 3 years. |
| Class 3 | Letting of property if the property would fall in accordance with generally accepted accounting practice to be described as owner-occupied (but see subsection (3)). |
| Class 4 | The provision of services in connection with property outside the United Kingdom where the services would not fall within Chapter 3 of Part 4 of CTA 2009 if provided in connection with property in the United Kingdom. |
| Class 5 | Entering into arrangements which are such that a finance arrangement code (within the meaning given by section 770(2) of this Act or section 809BZM(2) of ITA 2007) applies (factoring of income etc: finance arrangements). |
(3)For the purposes of class 3, ignore the fact that a property may fall to be described as owner-occupied merely because of the provision by the company of services to an occupant who—
(a)is in exclusive occupation of the property, and
(b)is not connected with a member of the group.
(4)The Commissioners for Her Majesty's Revenue and Customs may by regulations—
(a)add a class to the table in subsection (2),
(b)amend a class (or provision made in relation to it) or make such provision in relation to a class as the Commissioners consider appropriate, or
(c)remove a class from the table (or provision made in relation to it).
(1)Business is not property rental business so far as it gives rise to income of a class listed in the table in subsection (2).
[F1(1A)But see section 549A which treats income falling within class 7 of the table as profits of property rental business.]
(2)This is the table—
| Class | Description |
|---|---|
| Class 1 | All income in connection with the operation of a caravan site, if section 20(1) of ITTOIA 2005 (caravan sites) would apply in respect of any receipts in connection with the operation of the site. |
| Class 2 | Rent in respect of an electric-line wayleave. |
| Class 3 | Rent in respect of the siting of a pipeline for gas. |
| Class 4 | Rent in respect of the siting of a pipeline for oil. |
| Class 5 | Rent in respect of the siting of a mast or similar structure designed for use in a mobile telephone network or other system of electronic communication. |
| Class 6 | Rent in respect of the siting of a wind turbine. |
| Class 7 | Dividends from shares in— (a) the principal company of a group UK REIT, or (b) a company UK REIT. |
| Class 8 | Income arising out of an interest in a limited liability partnership where section 1273(4) of CTA 2009 (winding up) applies. |
[F2(2A)The reference in class 7 of the table in subsection (2) to dividends from shares includes share capital issued in lieu of a cash dividend (and the reference in subsection (1) to income is to be read accordingly).
(2B)Section 1051(2) to (4) (meaning of “share capital issued in lieu of a cash dividend”) applies for the purposes of subsection (2A) as it applies for the purposes of section 1049(1)(a).]
(3)The Commissioners for Her Majesty's Revenue and Customs may by regulations—
(a)add a class to the table in subsection (2),
(b)amend a class (or provision made in relation to it) or make such provision in relation to a class as the Commissioners consider appropriate, or
(c)remove a class from the table (or provision made in relation to it).
Textual Amendments
F1S. 605(1A) inserted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 19 para. 11
F2S. 605(2A)(2B) inserted (with effect in accordance with Sch. 4 para. 12 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 4 para. 11
(1)For the purposes of this Part a company (“the principal company”) and all its 75% subsidiaries form a group; and if any of those subsidiaries have 75% subsidiaries the group includes them and their 75% subsidiaries, and so on.
This is subject to subsection (2).
(2)A group does not include—
(a)a company (other than the principal company) which is not an effective 51% subsidiary of the principal company,
F3(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or
(d)an open-ended investment company.
(3)A company cannot be a member of more than one group; and if a company would be a member of more than one group, section 170(6) of TCGA 1992 (capital gains tax: groups) applies to determine the group of which it is a member.
(4)Subsection (3) does not apply for the purposes of Chapter 10.
(5)In this section—
“effective 51% subsidiary” has the meaning given by section 170(7) of TCGA 1992 (groups of companies),
“75% subsidiary” has the meaning given by section 1154(3) (subsidiaries),
F5...
F5...
“open-ended investment company” has the meaning given by section 613.
Textual Amendments
F3S. 606(2)(b) omitted (22.2.2024) by virtue of Finance Act 2024 (c. 3), Sch. 7 para. 6(2)
F4S. 606(2)(c) omitted (22.2.2024) by virtue of Finance Act 2024 (c. 3), Sch. 7 para. 6(2)
F5Words in s. 606(5) omitted (22.2.2024) by virtue of Finance Act 2024 (c. 3), Sch. 7 para. 6(3)
(1)In this Part “entry” means—
(a)in the case of a group, the time when the group becomes a group UK REIT, and
(b)in the case of a company, the time when the company becomes, or becomes a member of, a UK REIT.
(2)In this Part “cessation” means—
(a)in the case of a group, the time when the group ceases to be a UK REIT, and
(b)in the case of a company, the time when the company ceases to be, or to be a member of, a UK REIT.
(3)In this Part, in relation to a group or company—
(a)references to the “pre-entry group” or “pre-entry company” are references to the group or company before entry, and
(b)references to the “post-cessation group” or “post-cessation company” are references to the group or company after cessation.
(1)A reference in this Part to an asset includes a reference to—
(a)part of an asset, and
(b)an interest in, or right in relation to, an asset.
(2)A reference in this Part to assets used in business of a company includes a reference to assets—
(a)which were acquired for the purpose of that business and which are not being used in another business,
(b)which are available for use in that business, or
(c)which are in any other way held in respect of, or associated or connected with, that business.
(3)For the purposes of this Part an asset is “involved” in a business if it is property involved in the business as described in section 529(4)(a).
In this Part—
“accounting period 1”, in relation to a company that is, or is a member of, a UK REIT, means the accounting period that begins on entry (in accordance with section 536(5)),
“company” has the meaning given by section 170(9) of TCGA 1992, and
“market value” has the same meaning as in TCGA 1992 (see sections 272 and 273 of, and Schedule 11 to, that Act).