F1PART 4APROPERTY AIFS

Annotations:
Amendments (Textual)

CHAPTER 3THE TAX TREATMENT OF PROPERTY AIFS

Categories of business

Ring-fencing of tax-exempt business69X

1

For the purposes of corporation tax, the business of F (tax-exempt) shall be treated as a separate business (distinct from—

a

any business carried on by F (pre-entry),

b

any business carried on by F (residual), and

c

any business carried on by F (post-cessation)).

2

For the purposes of corporation tax, F (tax-exempt) shall be treated as a separate company (distinct from—

a

F (pre-entry),

b

F (residual), and

c

F (post-cessation)).

3

In particular—

a

a loss incurred by F (tax-exempt) may not be set off against the net income of F (residual),

b

a loss incurred in respect of F (residual) may not be set off against the net income of F (tax exempt),

c

a loss incurred in respect of F (pre-entry) may not be set off against the net income of F (tax-exempt) (but this regulation does not prevent a loss of that kind from being set off against profits of F (residual)),

d

a loss incurred by F (tax-exempt) may not be set off against profits arising to F (post-cessation) (in respect of business of any kind), and

e

receipts accruing after entry but relating to business of F (pre-entry) shall not be treated as receipts of F (tax-exempt).

4

In paragraph (3) a reference to a loss includes a reference to a deficit, expense, charge or allowance.

5

Section 392B of ICTA (ring-fencing of losses from overseas property business) shall not apply to business of F (tax-exempt).

6

Paragraphs 5B and 5C of Schedule 28AA to ICTA (transfer pricing: exemption for small and medium enterprises) shall not apply to an open-ended investment company to which this Part applies (whether to F (tax-exempt) or to F (residual)).