Part 12Real Estate Investment Trusts
Chapter 6Distributions
Distributions to certain shareholders
553Meaning of “holder of excessive rights”
1
For the purposes of section 551 “holder of excessive rights” means a person who meets—
a
condition A, and
b
either condition B or C.
2
Condition A is that the person—
a
is beneficially entitled (directly or indirectly) to at least 10% of the F1distributions paid by the distributor,
b
is beneficially entitled (directly or indirectly) to at least 10% of the distributor's share capital, or
c
controls (directly or indirectly) at least 10% of the voting rights in the distributor.
3
Condition B is that the person is a company.
4
Condition C is that—
a
the person is treated as a body corporate for tax purposes—
i
in accordance with the law of a territory outside the United Kingdom with which arrangements have been entered into to provide relief from double taxation, or
ii
in accordance with an international agreement containing such arrangements, and
b
those arrangements have effect by virtue of an Order in Council under section 2 of TIOPA 2010.
5
In subsection (2) “the distributor” has the meaning given by section 551(2).