Schedules
Schedule 7Real Estate Investment Trusts
7Property financing costs
1
Section 544 (meaning of “property profits” and “property financing costs”) is amended as follows.
2
In subsection (3)(a), for “property rental business of members of the group” substitute “the group's property rental business in the United Kingdom”
.
3
After subsection (3) insert—
3A
The reference in subsection (3)(a) to the group's property rental business in the United Kingdom is a reference to—
a
property rental business of UK members of the group, and
b
UK property rental business of other members.
4
Section 544 has effect, and is to be deemed always to have had effect, with the amendments made by sub-paragraphs (2) and (3).
5
After subsection (4) insert—
4A
But property financing costs do not (for the purposes of section 543) include any expense for which a deduction would not be allowed in calculating profits in accordance with section 599, other than an expense which is disallowed only as a result of the application of Part 10 of TIOPA 2010 (corporate interest restriction).
6
The amendment made by sub-paragraph (5) has effect for accounting periods ending on or after 1 April 2023.