Chapter 3U.K.Tax treatment of profits and gains of UK REITs
534ProfitsU.K.
(1)Profits of property rental business of a UK company which is, or is a member of, a UK REIT are not charged to corporation tax.
(2)Profits of UK property rental business of a non-UK member of a group UK REIT are not charged to corporation tax.
F1(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)If a percentage of the profits of property rental business of a member of a group UK REIT is excluded from a financial statement in accordance with section 533(3), that percentage of those profits is to be treated for corporation tax purposes as profits of residual business of the member.
(5)For the purposes of subsections (1) and (2) profits are to be calculated in accordance with section 599.
Textual Amendments
F1S. 534(3) omitted (with effect in accordance with Sch. 1 para. 22 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 1 para. 14(2)
535GainsU.K.
(1)A gain on the disposal of an asset is not a chargeable gain if—
(a)the gain accrues to a company which is, or is a member of, a UK REIT, and
(b)condition A or B is met in relation to the asset.
(2)Condition A is that the asset was used wholly and exclusively for the purposes of property rental business of the company.
(3)Condition B is that the asset was used during one or more periods of (in total) less than a year—
(a)partly for the purposes of property rental business of the company, and
(b)partly for the purposes of residual business of the company,
but was otherwise used as mentioned in subsection (2).
(4)Subsection (5) applies if a gain accrues to a company which is, or is a member of, a UK REIT on the disposal of an asset which for one or more periods of (in total) at least a year has been used—
(a)partly for the purposes of property rental business of the company, and
(b)partly for the purposes of residual business of the company.
(5)Such part of the gain as may reasonably be attributed to property rental business of the company, having regard to—
(a)the extent to which the asset was used for the different purposes, and
(b)the length of the periods during which it was used for those purposes,
is not a chargeable gain.
F2(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)If a percentage of the gains of property rental business of a member of a group UK REIT is excluded from a financial statement in accordance with section 533(3), that percentage of those gains is to be treated for corporation tax purposes as gains of the member's residual business.
(8)This section has effect in relation to a non-UK member of a group UK REIT as if references to property rental business of the member were to its UK property rental business.
(9)This section is to be read as if it were contained in TCGA 1992.
Textual Amendments
F2S. 535(6) omitted (with effect in accordance with Sch. 1 para. 22 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 1 para. 14(3)