http://www.legislation.gov.uk/ukpga/2010/4/section/547Corporation Tax Act 2010An Act to restate, with minor changes, certain enactments relating to corporation tax and certain enactments relating to company distributions; and for connected purposes.texttext/xmlenStatute Law Database2026-05-20Expert Participation2026-03-18 Corporation Tax Act 2010s. 658(1)(d)(e)Finance Act 2010Sch. 6 para. 31Sch. 6 para. 35Corporation Tax Act 2010s. 357CHAFinance Act 2024Sch. 2 para. 14(7)Sch. 2 para. 16(2) Part 12Chapter 55471This section applies if a—acompany UK REIT or a member of a group UK REIT disposes of an asset used wholly and exclusively for the purposes of property rental business, andbthe company UK REIT or any member of the group UK REIT holds the proceeds in cash.2Profits or losses arising from a loan relationship entered into in connection with the proceeds—aare to be ignored for the purposes of section 599 (calculation of profits), andbare to be treated for all tax purposes as arising from a loan relationship entered into in connection with residual business.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4For the purposes of this section proceeds are held in cash if—aheld on deposit (whether or not in sterling),binvested in stocks or bonds of any of the descriptions included in Part 1 of Schedule 11 to FA 1942 (gilts), orcheld or invested in such other form as the Commissioners for Her Majesty's Revenue and Customs may specify for the purposes of this section in regulations.5In the case of the disposal of an asset which, for one or more periods of (in total) at least a year, has been used—apartly for the purposes of property rental business of the company, andbpartly for the purposes of residual business of the company,this section applies to such part of the proceeds as may reasonably be attributed to the property rental business (having regard to the extent to which, and the length of the periods during which, the asset was used for the different purposes).6This section also applies to proceeds held in cash by a company on a disposal of an asset so far as section 535A secures that the appropriate proportion of a gain or loss accruing on the disposal is not a chargeable gain or allowable loss.S. 547(3) omitted (with effect in accordance with Sch. 4 para. 32(1) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 4 para. 28S. 547(6) inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 116