Part 12Real Estate Investment Trusts
Chapter 10Joint ventures
Specific requirements and modifications
591Conditions as to balance of business
1
This section applies if—
a
a notice is given under section 586 in respect of a joint venture company, or
b
a notice is given under section 587 in respect of a joint venture group.
2
Condition A in section 531 (balance of business: profits) must be met in respect of the company or group in relation to each accounting period in relation to which the notice has effect.
3
Condition B in section 531 (balance of business: assets) must be met in respect of the company or group at the beginning of each accounting period in relation to which the notice has effect.
4
For the purposes of this section, section 531 applies—
a
in the case of a joint venture company, as if it were a company which had given a notice under section 524, and
b
in the case of a joint venture group, as if it were a group in respect of which a notice had been given under section 523.
592Joint venture groups: financial statements
1
This section applies if a notice is given under section 587 in respect of a joint venture group.
2
The principal company of the joint venture group must prepare financial statements for the group for each accounting period in relation to which the notice has effect.
3
The reference in subsection (2) to financial statements is a reference to financial statements of a kind required under section 532(2).
4
Sections 532(3) and 533 apply to the financial statements under subsection (2) as they apply to financial statements under section 532(2).
5
Financial statements prepared under subsection (2) must be submitted to an officer of Revenue and Customs.
6
Financial statements under subsection (2) are in addition to the provision required in respect of the members of the joint venture group (as a result of the application of this Part to the group) in financial statements under section 532.
593Financial statements under section 532: joint venture groups
1
This section applies if a notice is given under section 587 in respect of a joint venture group.
2
The amount to be included in the financial statements under section 532(2) in relation to a member of a joint venture group is the relevant percentage of profits, expenses, gains, losses, assets and liabilities of the member.
3
“The relevant percentage” means—
a
in a case where a notice was given under section 587(1), the percentage of the beneficial interest in the member that is held by members of the venturing group, and
b
in a case where a notice was given under section 587(2), the percentage of the beneficial interest in the member that is held by the venturing company.
4
Section 533 accordingly has effect in relation to the member as if for subsection (3) there were substituted subsections (2) and (3) of this section.
594Modifications of Chapter 3
1
Section 534(4) (profits) has effect in relation to a joint venture company or a member of a joint venture group as if for the words from “is to be treated” to the end there were substituted “is to be ignored for the purposes of this section”.
2
Section 535(7) (gains) has effect in relation to a joint venture company or a member of a joint venture group as if for the words from “is to be treated” to the end there were substituted “is to be ignored for the purposes of this section”.