Section 595: Joint venture company liable for additional charge
1868.This section provides that a joint venture company is chargeable to an additional amount of entry charge in certain circumstances. It is based on sections 138(1) and (2) of FA 2006.
1869.This section enacts regulation 14 of SI 2006/2866. See Change 43 in Annex 1.
1870.This sectionprovides that a joint venture company is chargeable to tax under section 538 in respect of the “reduced notional amount” if either:
a venturing company becomes a principal company of a group UK REIT and it increases its holding in a joint venture company; or
a venturing group increases its holding in a joint venture company to more than 75%.
1871.Subsection (7) defines “reduced notional amount”.
1872.If more than 75% of the shares of the joint venture company are held by the company, the joint venture company is a subsidiary and is covered by the section 523(1) notice. It is not possible to give a further notice under section 586.