Finance Act 2006

Section 104

SCHEDULE 16 U.K. Real Estate Investment Trusts: excluded business and income

Part 1 U.K. Classes of business

1 U.K. Incidental letting of property (whether in the United Kingdom or outside) which is held in connection with a trade in property.

2 U.K. Letting of property which is held for use for administrative purposes in carrying on property rental business but is temporarily surplus to requirements for those purposes, provided that—

(a) the space let is comparatively small compared to the space occupied for administrative purposes, and

(b) the letting is for a term of not more than three years.

[F1 3 (1) Letting of property if the property would fall in accordance with generally accepted accounting practice to be described as owner-occupied. U.K.

(2) For the purpose of sub-paragraph (1), no account shall be taken of the fact that a property may fall to be described as owner-occupied by reason only of the provision 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 (within the meaning given by section 839 of ICTA).]

Textual Amendments

F1 Sch. 16 para. 3 substituted (6.7.2009) by Real Estate Investment Trusts (Amendment of Schedule 16 to the Finance Act 2006) Regulations 2009 (S.I. 2009/1482), regs. 1, 2

4 U.K. The provision of services in connection with property outside the United Kingdom where the services would not fall within [F2 Chapter 3 of Part 4 of CTA 2009] if provided in connection with property in the United Kingdom.

Textual Amendments

F2 Words in Sch. 16 para. 4 substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 697(2) (with Sch. 2 Pts. 1, 2)

5 U.K. Entering into structured finance arrangements to which section 774B or 774D of ICTA applies (factoring of rent and other income receipts).

Part 2 U.K. Classes of income or profit

6 U.K. All income in connection with the operation of a caravan site, if section 20(1) of ITTOIA 2005 (caravan sites) would apply in respect of any receipts in connection with the operation of the site.

7 U.K. Rent in respect of an electric-line wayleave.

8 U.K. Rent in respect of the siting of a pipeline for gas.

9 U.K. Rent in respect of the siting of a pipeline for oil.

10 U.K. Rent in respect of the siting of a mast or similar structure designed for use in a mobile telephone network or other system of electronic communication.

11 U.K. Rent in respect of the siting of a wind turbine.

12 U.K. Dividends from shares in a company to which this Part of this Act applies.

13 U.K. Income arising out of an interest in a limited liability partnership where [F3 section 1273(4) of CTA 2009] (winding-up) applies.

Textual Amendments

F3 Words in Sch. 16 para. 13 substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 697(3) (with Sch. 2 Pts. 1, 2)

Part 3 U.K. Power to amend

14 U.K. The Commissioners for Her Majesty's Revenue and Customs may by regulations—

(a) add a paragraph to Part 1 or 2 of this Schedule,

(b) amend a paragraph of Part 1 or 2 of this Schedule, or

(c) repeal a paragraph of Part 1 or 2 of this Schedule.