Part 15Deduction of income tax at source

Chapter 18Other regimes involving the deduction of income tax at source

Real Estate Investment Trusts

973Income tax due in respect of distributions

(1)

The Treasury may make regulations providing for the assessment, collection and recovery of income tax where—

(a)

a distribution to which subsection (2) or (3) applies is made, and

(b)

tax is or may become chargeable in respect of the distribution (whether by virtue of F1section 548(5) or (6) of CTA 2010 (distributions: liability to tax) or otherwise).

(2)

This subsection applies to a distribution if—

(a)

it is made by a F2company UK REIT, and

(b)

it is a distribution of profits or gains (or of both) of F3the company's property rental business.

(3)

This subsection applies to a distribution if—

(a)

it is made by the principal company of a F4group UK REIT, and

F5(b)

it is a distribution of amounts shown in the financial statement under section 532(2)(a) of CTA 2010 (statement of group's property rental business) as—

(i)

profits or gains (or both) of UK members of the group, or

(ii)

profits or gains (or both) of UK property rental business of non-UK members of the group.

F6(3A)

In this section, section 974 and any regulations under this section, “distribution” is to be read in accordance with section 554A of CTA 2010 (meaning of “distribution”).

(3B)

Section 599A of CTA 2010 (amount of distribution consisting of share capital issued in lieu of cash dividend) applies for the purposes of this section, section 974 and any regulations under this section as it applies for the purposes of Part 12 of that Act (Real Estate Investment Trusts).

F7(4)

In this section—

“company UK REIT” and “group UK REIT” have the same meaning as in Part 12 of CTA 2010 (see sections 523(5) and 524(5) of that Act),

“group” and “principal company” have the same meaning as in Part 12 of CTA 2010 (see section 606 of that Act), and

“property rental business” and “UK property rental business” have the same meaning as in Part 12 of CTA 2010 (see sections 519 and 520 of that Act).

(5)

References in this section to a F8UK or non-UK company are to be read in accordance with Part 12 of CTA 2010 (see section 521 of that Act).

(6)

In this section “gains” includes chargeable gains.

F9(7)

In relation to references to profits of property rental business, see section 549A of CTA 2010.