5(1)In section 106 a reference to a company shall be treated as a reference to the principal company.U.K.
(2)The requirement in section 106(2) shall be treated as including a requirement that the principal company prepare for the accounting period, and submit to the Commissioners for Her Majesty's Revenue and Customs, financial statements in accordance with paragraph 31 (“the financial statements”).
Modifications etc. (not altering text)
C1Sch. 17 para. 5(2) applied (with modifications) (31.12.2007) by The Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007 (S.I. 2007/3425), reg. 22
6(1)For the purposes of section 107(1) the property rental businesses of the members of the group shall be treated as a single business.U.K.
(2)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)For section 107(8) substitute—
“(8)[F3Condition 3] is that at least 90% of the UK profits of the property rental business arising in the accounting period are distributed—
(a)by the principal company,
(b)by way of dividend, and
(c)on or before the filing date for the principal company's tax return for the accounting period (see paragraph 14 of Schedule 18 to FA 1998);
and for the purposes of this Condition “UK profits” means amounts shown in the financial statements of G (property rental business) as profits of UK resident members of the group.”
(5)In the application of section 107(9) compliance with [F3Condition 3] shall be treated as unlawful in so far as—
(a)the Condition applies to the profits of the property rental business attributable to a member, and
(b)compliance with the Condition by the member would (if the Condition applied to it) be unlawful as described in section 107(9)(a)(i) or (ii).
Textual Amendments
F1Sch. 17 para. 6(2) repealed (with effect in accordance with s. 52 of the amending Act) by Finance Act 2007 (c. 11), ss. 52, 114, Sch. 17 para. 16(3), {Sch. 27 Pt. 2(17) Note}
F2Sch. 17 para. 6(3) repealed (with effect in accordance with s. 52 of the amending Act) by Finance Act 2007 (c. 11), ss. 52, 114, Sch. 17 para. 16(3), {Sch. 27 Pt. 2(17) Note}
F3Words in Sch. 17 para. 6(4)(5) substituted (with effect as mentioned in s. 52(2) of the amending Act) by Finance Act 2007 (c. 11), s. 52, Sch. 17 para. 16(4)
7U.K.In the application of section 108—
(a)the aggregate amount shown in the financial statement as profits of members of G (property rental business), calculated in accordance with international accounting standards, shall be treated as the amount of the income accruing from tax-exempt business,
(b)the aggregate amount shown in the financial statements as the amount of the profits of members of G (residual) shall be treated as the amount of the income accruing from non-tax-exempt business,
(c)the amount shown in the financial statements as the amount of the assets of G (property rental business) shall be treated as the amount of the assets involved in tax-exempt business, and
(d)the amount shown in the financial statements as the amount of the assets of G (residual) shall be treated as the amount of the assets involved in non-tax-exempt business.
Modifications etc. (not altering text)
C2Sch. 17 para. 7 modified (31.12.2007) by The Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007 (S.I. 2007/3425), reg. 20(4)