F1PART 4APROPERTY AIFS
CHAPTER 2ENTRY INTO AND MEMBERSHIP OF THE PROPERTY AIF REGIME
Consequences of entry
Effects of entry69V
1
Property rental business of F (pre-entry) shall be treated for the purposes of corporation tax as ceasing at entry.
2
Assets which immediately before entry are involved in property rental business of F (pre-entry) shall be treated for the purposes of corporation tax as being sold by F (pre-entry) immediately before entry and reacquired by F (tax-exempt) immediately after entry.
3
For the purposes of corporation tax, on entry one accounting period of the open-ended investment company shall end and another shall begin.
4
On entry a new distribution period of the open-ended investment company shall begin.
5
The sale and reacquisition deemed under paragraph (2) shall not have effect for the purposes of tax in respect of chargeable gains.
6
For the purposes of CAA 2001, the sale and reacquisition deemed under paragraph (2)—
a
shall not give rise to allowances or charges, and
b
shall not make it possible to make an election under section 198 or 199 of that Act (apportionment).
7
For the purposes of CAA 2001, anything done by or to F (pre-entry) before entry in relation to an asset which is deemed under paragraph (2) to be sold and reacquired shall be treated after entry as having been done by or to F (tax-exempt).
Duration69W
Once this Part has begun to apply to an open-ended investment company it shall continue to apply unless and until it ceases to apply in accordance with Chapter 7 of this Part.
Pt. 4A inserted (6.4.2008) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2008 (S.I. 2008/705), regs. 1, 5