Finance Act 1996

Investments in housing by investment trusts

2 (1) Section 842 of the Taxes Act 1988 (investment trusts) shall be amended as follows.

(2) In subsection (1) (conditions as to a company’s income for approval as an investment trust)—

(a) in paragraph (a), for “derived wholly or mainly from shares or securities” there shall be substituted “consists wholly or mainly of eligible investment income”; and

(b) in paragraph (e), for “the income it derives from shares or securities” there shall be substituted “its eligible investment income”.

(3) After that subsection there shall be inserted the following subsection—

“(1AA) Income is eligible investment income for the purposes of this section in so far as it is either—

(a) income deriving from shares or securities, or

(b) eligible rental income, within the meaning of section 508A.”