Corporation Tax Act 2010

Interpretation

604Property rental business: exclusion of listed business

(1)Business of a class listed in the table in subsection (2) is not property rental business.

(2)This is the table—

(3)For the purposes of class 3, ignore the fact that a property may fall to be described as owner-occupied merely because of the provision by the company of services to an occupant who—

(a)is in exclusive occupation of the property, and

(b)is not connected with a member of the group.

(4)The Commissioners for Her Majesty’s Revenue and Customs may by regulations—

(a)add a class to the table in subsection (2),

(b)amend a class (or provision made in relation to it) or make such provision in relation to a class as the Commissioners consider appropriate, or

(c)remove a class from the table (or provision made in relation to it).

605Property rental business: exclusion of business producing listed income

(1)Business is not property rental business so far as it gives rise to income of a class listed in the table in subsection (2).

(2)This is the table—

(3)The Commissioners for Her Majesty’s Revenue and Customs may by regulations—

(a)add a class to the table in subsection (2),

(b)amend a class (or provision made in relation to it) or make such provision in relation to a class as the Commissioners consider appropriate, or

(c)remove a class from the table (or provision made in relation to it).

606Groups

(1)For the purposes of this Part a company (“the principal company”) and all its 75% subsidiaries form a group; and if any of those subsidiaries have 75% subsidiaries the group includes them and their 75% subsidiaries, and so on.

This is subject to subsection (2).

(2)A group does not include—

(a)a company (other than the principal company) which is not an effective 51% subsidiary of the principal company,

(b)an insurance company,

(c)an insurance subsidiary, or

(d)an open-ended investment company.

(3)A company cannot be a member of more than one group; and if a company would be a member of more than one group, section 170(6) of TCGA 1992 (capital gains tax: groups) applies to determine the group of which it is a member.

(4)Subsection (3) does not apply for the purposes of Chapter 10.

(5)In this section—

• “effective 51% subsidiary” has the meaning given by section 170(7) of TCGA 1992 (groups of companies),

• “75% subsidiary” has the meaning given by section 1154(3) (subsidiaries),

• “insurance company” has the meaning given by section 431(2) of ICTA,

• “insurance subsidiary” means a company in which at least 75% of the ordinary shares are held by one or more insurance companies, and

• “open-ended investment company” has the meaning given by section 613.

607Meaning of “entry” and “cessation” etc

(1)In this Part “entry” means—

(a)in the case of a group, the time when the group becomes a group UK REIT, and

(b)in the case of a company, the time when the company becomes, or becomes a member of, a UK REIT.

(2)In this Part “cessation” means—

(a)in the case of a group, the time when the group ceases to be a UK REIT, and

(b)in the case of a company, the time when the company ceases to be, or to be a member of, a UK REIT.

(3)In this Part, in relation to a group or company—

(a)references to the “pre-entry group” or “pre-entry company” are references to the group or company before entry, and

(b)references to the “post-cessation group” or “post-cessation company” are references to the group or company after cessation.

608References to assets

(1)A reference in this Part to an asset includes a reference to—

(a)part of an asset, and

(b)an interest in, or right in relation to, an asset.

(2)A reference in this Part to assets used in business of a company includes a reference to assets—

(a)which were acquired for the purpose of that business and which are not being used in another business,

(b)which are available for use in that business, or

(c)which are in any other way held in respect of, or associated or connected with, that business.

(3)For the purposes of this Part an asset is “involved” in a business if it is property involved in the business as described in section 529(4)(a).

609Definitions

In this Part—

• “accounting period 1”, in relation to a company that is, or is a member of, a UK REIT, means the accounting period that begins on entry (in accordance with section 536(5)),

• “company” has the meaning given by section 170(9) of TCGA 1992, and

• “market value” has the same meaning as in TCGA 1992 (see sections 272 and 273 of, and Schedule 11 to, that Act).