107Conditions for tax-exempt businessE+W+S+N.I.
(1)In order to be a company to which this Part applies in respect of an accounting period—
(2)Property rental business of a company is “tax-exempt business” for the purposes of this Part in respect of an accounting period if—
(3)Condition 1 is that the property rental business involves at least three properties.
(4)Condition 2 is that no one property represents more than 40% of the total value of the properties involved in the property rental business.
(5)F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a)a reference to a property involved in a business is a reference to an estate, interest or right by the exploitation of which the business is conducted,
(b)a property is a single property if it is designed, fitted or equipped for the purpose of being rented, and it is rented or available for rent, as a commercial or residential unit (separate from any other commercial or residential unit),
(c)assets must be valued in accordance with international accounting standards (within the meaning of section 50(2) of FA 2004),
(d)where international accounting standards offer a choice of valuation between cost basis and fair value, fair value must be used, and
(e)no account shall be taken of liabilities secured against or otherwise relating to assets (whether generally or specifically).
(7)F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a)by way of dividend, and
(b)on or before the filing date for the company's tax return for the accounting period (see paragraph 14 of Schedule 18 to FA 1998).
(i)an enactment (including Northern Ireland legislation and an Act of the Scottish Parliament), or
(ii)an enactment of a jurisdiction outside the United Kingdom where the enactment is prescribed, or is of a kind prescribed, for the purposes of this paragraph in regulations made by the Commissioners for Her Majesty's Revenue and Customs, and
(b)a distribution that is withheld in order to prevent or reduce a charge to tax arising under regulations under section 114 shall be treated for the purposes of Condition 4 as having been made.
Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.