Part 4Real Estate Investment Trusts

Assets etc

116Minor or inadvertent breach

1

The Treasury may make regulations about the application of this Part to a company if a requirement in section 106(5) or (6), 107 or 108 is not satisfied (whether generally or in respect of an accounting period).

2

A company which gave a notice under section 109 shall notify the Commissioners for Her Majesty’s Revenue and Customs as soon as reasonably practicable if a requirement in section 106(5) or (6), 107 or 108 ceases to be satisfied in relation to the company.

3

The regulations may, in particular—

a

provide for this Part to cease to apply to a company at a time specified by or determined in accordance with the regulations (which may be before the breach of a requirement);

b

provide for this Part to continue to apply to a company with specified modifications;

c

provide for sums to be charged to tax, or otherwise treated, in accordance with the regulations;

d

make provision by reference to the extent of a failure to satisfy a requirement;

e

make provision by reference to the number of requirements not satisfied;

f

limit the number of occasions on which a provision of the regulations may be relied upon by a company in respect of a specified period;

g

include other provision for preventing tax avoidance;

h

confer a discretion on the Commissioners.

4

This section is subject to section 129.