Finance Act 2006

Valid from 19/07/2006

Profits U.K.

17 (1) Section 119 shall apply only in relation to each UK resident company which is a member of the group; for which purpose— U.K.

(a) a reference to C (tax-exempt) is a reference to the company if or in so far as it is a member of G (property rental business), and

(b) a reference to C (residual) is a reference to the company if or in so far as it is a member of G (residual).

(2) Where a percentage of the profits of a member of G (property rental business) is excluded from a financial statement in accordance with paragraph 31(5), the excluded percentage shall be treated for the purposes of corporation tax as profits of the member in so far as it is a member of G (residual).

18 (1) In the application of section 121(1)— U.K.

(a) the reference to a company to which Part 4 applies shall be treated as a reference to the principal company of a group to which Part 4 applies, and

(b) the reference to the profits of C (tax-exempt) shall be treated as a reference to amounts shown in the financial statements of G (property rental business) as—

(i) the profits of the UK resident members of the group, and

(ii) gains accruing to UK resident members of the group.

(2) In section 121(5) the reference to a company to which Part 4 applies shall be treated as a reference to the principal company of a group to which Part 4 applies.

(3) In the application of section 121(8)—

(a) for paragraph (a) substitute—

“(a) the reference to the principal company of a group to which this Part applies includes a reference to the principal company of G (post-cessation),” and

(b) disregard paragraph (b).

19 (1) In the application of section 122(1)(a)—

(a) the reference to a company to which Part 4 applies shall be treated as a reference to the principal company of a group to which Part 4 applies, and

(b) the reference to profits of a company's tax-exempt business shall be treated as a reference to amounts shown in the financial statements of G (property rental business) as—

(i) the profits of the UK resident members of the group, and

(ii) gains accruing to UK resident members of the group.

(2) In the application of section 122(2)(n), (o) and (p) a reference to a company shall be treated as a reference to the principal company.

(3) In the application of section 122 disregard subsection (5).

20 U.K. In the application of section 123—

(a) the reference to a company to which Part 4 applies shall be treated as a reference to the principal company of a group to which Part 4 applies, and

(b) the reference to C (tax-exempt) shall be treated as a reference to a member of G (property rental business).