SCHEDULES

SCHEDULE 11Corporate interest restriction

Real Estate Investment Trusts

14

1

Section 452 (Real Estate Investment Trusts) is amended as follows.

2

In subsection (4), at the end insert “ (and, accordingly, the profits mentioned in section 534(1) or (2) of CTA 2010 are not calculated for the purposes of this Part in accordance with section 599 of that Act) ”.

3

After subsection (4) insert—

4A

An amount charged on the residual business company as a result of section 543 of CTA 2010 (excessive property financing costs) is treated for the purposes of this Part as if it met condition A, B, C or D for the purposes of section 385 (tax-interest income amounts).

4

For subsection (5) substitute—

5

The allocated disallowance for the property rental business company (if any) for the accounting period—

a

is to be taken into account in calculating the profits of the property rental business for the purposes of section 530 of CTA 2010 (condition as to distribution of profits), but

b

must be limited to such amount as secures that neither subsection (3)(b) nor subsection (5) of that section (distribution of profits not required if would result in unlawful distribution) applies.