Part 4 U.K.Real Estate Investment Trusts

Capital gainsU.K.

124Corporation taxU.K.

(1)A gain accruing to a company to which this Part applies on the disposal of an asset shall not be a chargeable gain if—

(a)the asset was used wholly and exclusively for the purposes of the business of C (tax-exempt), or

(b)the asset was used partly for the purposes of the business of C (tax-exempt) and partly for the purposes of the business of C (residual) during one or more periods of (in aggregate) less than a year, but was otherwise used wholly and exclusively for the purposes of the business of C (tax-exempt).

(2)Where a gain accrues to a company to which this Part applies on the disposal of an asset which for one or more periods of (in aggregate) at least a year has been used partly for the purposes of the business of C (tax-exempt) and partly for the purposes of the business of C (residual), such part of the gain as may reasonably be attributed to the business of C (tax-exempt) (having regard to the extent to which, and the length of the periods during which, the asset was used for the different purposes) shall not be a chargeable gain.

(3)Corporation tax shall be charged in respect of gains accruing to C (residual) at a rate determined without reference to section 13 of ICTA (small companies rate).

Modifications etc. (not altering text)