The Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007

PART 1 Preliminary provisions and interpretation

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007 and shall come into force on 31st December 2007.

(2) These Regulations shall have effect in relation to accounting periods that begin on or after 1st January 2007.

Structure of these Regulations

2.  The structure of these Regulations is as follows—

• this Part contains preliminary provisions and provides for interpretation;

• Part 2 contains provisions which apply in the case of a single company to which Part 4 applies where the company carries on a joint venture with another person and the joint venture is conducted through a group of companies; and

• Part 3 contains provisions which apply in the case of a company which is a member of a group to which Part 4 applies where the company has an interest in a joint venture carried on by another group of companies.

Interpretation: general

3.—(1) In these Regulations—

(a) a reference to Part 4 is a reference to Part 4 of the Finance Act 2006,

(b) a reference to a section (without more) is a reference to that section of the Finance Act 2006, and

(c) a reference to Schedule 17 is a reference to Schedule 17 to the Finance Act 2006.

(2) In these Regulations—

“equity holder” has the meaning it has in regulation 4(1);

“joint venture group” means—

(a)

a group of companies determined in accordance with section 134(2) to (4) carrying on a joint venture between a company to which Part 4 applies and another person, or

(b)

a group of companies determined in accordance with section 134(2) to (4) carrying on a joint venture in which a member of a group to which Part 4 applies has an interest;

“joint venture group look through notice” means—

(a)

in the case of a company to which Part 4 applies, a notice given under regulation 5, and

(b)

in the case of a group to which Part 4 applies, a notice given under regulation 17;

“JVG (property rental business)” has the meaning it has in regulation 4(3);

“JVG (residual)” has the meaning it has in regulation 4(3);

“principal company” in relation to a joint venture group means the principal company referred to in section 134(2);

“UK business of a joint venture group” is to be construed in accordance with regulation 4(5);

“UK resident company” is to be construed in accordance with regulation 4(6);

“venturing company” means the company referred to in regulation 5(1); and

“venturing group” means the group referred to in regulation 17(1).

Interpretation: specific terms

4.—(1) “equity holder” in relation to a member of a joint venture group means a person who—

(a) holds ordinary shares in the member, or

(b) is a loan creditor of the member in respect of a loan which is not a normal commercial loan within the meaning of paragraph 1(5) of Schedule 18 to the Income and Corporation Taxes Act 1988(1).

(2) References to profits or assets available for distribution to equity holders in a member of a joint venture group do not include a reference to any profits or assets available for distribution to an equity holder other than as such.

(3) In relation to a joint venture group—

(a) “JVG (property rental business)” means the group while a notice under regulation 5 or regulation 17 applies to it in so far as it carries on property rental business which satisfies Conditions 1 and 2 of section 107, as that section is modified by paragraph 6 of Schedule 17(2) but with references to the group in that paragraph treated as references to the joint venture group, and

(b) “JVG (residual)” means the group in so far as it carries on business that is not property rental business.

(4) In relation to a member of a joint venture group, a reference to property rental business does not include property that is let by the member—

(a) to a venturing company which gives notice under regulation 5 in respect of that member, or

(b) to a member of a venturing group, where the principal company of the venturing group gives notice under regulation 17 in respect of that member.

(5) A reference to the UK business of a joint venture group is a reference to—

(a) the property rental business of the UK resident members of the group, and

(b) the property rental business in the United Kingdom of other members.

(6) A reference to a UK resident company is a reference to a company which—

(a) is resident in the United Kingdom, and

(b) is not resident in another place in accordance with the law of that place relating to taxation.

(1)

1988 c. 1; paragraph 1(5) of Schedule 18 was amended by section 101(3) of the Finance Act 1989 (c. 26).

(2)

Section 107 of, and paragraph 6 of Schedule 17 to, the Finance Act 2006 were amended by paragraphs 3 and 16(3) of Schedule 17 to the Finance Act 2007.