27(1)Section 531 (conditions as to balance of business) is amended as follows.U.K.
(2)For subsection (5) substitute—
“(5)Condition B is that at the beginning of the accounting period the sum of—
(a)the value of the assets relating to property rental business, and
(b)the value of the assets relating to residual business so far as consisting of cash,
is at least 75% of the total value of assets held by the group or company (as the case may be).”
(3)In subsection (6)(b) after “business” insert “ (and the amount of the group's cash is to be determined accordingly) ”.
(4)After subsection (7) insert—
“(8)In this section “cash” means—
(a)money held on deposit (whether or not in sterling),
(b)stocks or bonds of any description included in Part 1 of Schedule 11 to FA 1942 (gilts), or
(c)money held in any other way, or any investment of any other form, specified in regulations made by the Commissioners for Her Majesty's Revenue and Customs.”
28U.K.In section 547 (funds awaiting reinvestment) omit subsection (3).
29(1)Section 566 (breach of condition B in section 531 in accounting period 1) is amended as follows.U.K.
(2)In subsection (2) omit the words from “but an amount of income” to the end.
(3)Omit subsections (3) to (6).
30U.K.Omit section 567 (breach of condition B in section 531 in accounting period 1: meaning of “the notional amount”).
31U.K.In section 568 (breach of balance of business conditions after accounting period 1) in subsection (2)(b) for “value of the assets involved in property rental business of the UK REIT in question” substitute “ sum of the values mentioned in section 531(5)(a) and (b) ”.
32(1)The amendments made by paragraphs 27, 28 and 31 have effect for accounting periods beginning on or after the day on which this Act is passed.U.K.
(2)The amendments made by paragraphs 29 and 30 have effect in relation to a breach of condition B in section 531 if accounting period 1 begins on or after the day on which this Act is passed.