Part 12Real Estate Investment Trusts
Chapter 8Breach of conditions in Chapter 2
564Breach of condition as to distribution of profits
1
Subsection (2) applies if the condition in section 530 (distribution of profits) is not met in relation to an accounting period.
2
The breach is to be ignored; but the amount given by section 565 (“the section 565 amount”) is charged to corporation tax under the charge to corporation tax on income.
3
The section 565 amount is to be treated as profits of residual business—
a
of the principal company of the group UK REIT, or
b
of the company UK REIT,
as the case may be.
F44
Accordingly, it is charged to corporation tax at the main rate of corporation tax.
F34
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F25
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F26
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F27
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F28
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9
No loss, deficit, expense or allowance may be set off against the section 565 amount.
F110
In this section and section 565, “ distribution ” is to be read in accordance with section 530(6A) and (6B).