10.—(1) For the purposes of regulation 7(1)(a), P’s principal business is residential property development if—
(a)50% or more of P’s total adjusted operating profits for the specified period were derived from the development of residential property in the United Kingdom; or
(b)it is reasonable for Secretary of State to conclude from—
(i)annual reports published by P, or
(ii)where P does not publish an annual report, any other publication published by P or by a body corporate in the same group as P,
which relate to the specified period, that P’s principal business activity during the specified period was the development of residential property.
(2) For the purposes of this regulation—
(a)“residential property” has the same meaning as in section 37 of the Finance Act 2022(1);
(b)the “development of residential property”—
(i)means commissioning or undertaking the construction or refurbishment of residential property, with a view to granting or disposing of interests in that property, and
(ii)includes residential property development activities (within the meaning of section 35 of the Finance Act 2022) which are ancillary to the activities in paragraph (i);
(c)P’s adjusted operating profits means the adjusted operating profits for the specified period derived from P’s accounts or consolidated accounts, as applicable, in accordance with regulation 11.