SCHEDULES

SCHEDULE 30 Investments in housing

Investments in housing by investment trusts

2

1

Section 842 of the Taxes Act 1988 (investment trusts) shall be amended as follows.

2

In subsection (1) (conditions as to a company’s income for approval as an investment trust)—

a

in paragraph (a), for “derived wholly or mainly from shares or securities” there shall be substituted “ consists wholly or mainly of eligible investment income ”; and

b

in paragraph (e), for “the income it derives from shares or securities” there shall be substituted “ its eligible investment income ”.

3

After that subsection there shall be inserted the following subsection—

1AA

Income is eligible investment income for the purposes of this section in so far as it is either—

a

income deriving from shares or securities, or

b

eligible rental income, within the meaning of section 508A.