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.