F1PART 4APROPERTY AIFS

Annotations:
Amendments (Textual)

CHAPTER 2ENTRY INTO AND MEMBERSHIP OF THE PROPERTY AIF REGIME

The property investment business condition

Property investment business: further provisions69G

1

If an open-ended investment company to which this Part applies receives a distribution from a UK-REIT—

a

the distribution is income of F (tax-exempt) to the extent that the distribution represents business of C (tax-exempt) carried on by the UK-REIT, and

b

the distribution is income of F (residual) to the extent that the distribution represents business other than business of C (tax-exempt) carried on by the UK-REIT.

2

In paragraph (1) “C (tax-exempt)” shall be construed in accordance with Part 4 of the Finance Act 2006.

3

If an open-ended investment company to which this Part applies receives a distribution from an entity within regulation 69F(1)(c), the distribution is income of F (tax-exempt) except to the extent that the distribution is identified, at the time at which it is made, as arising from any activity of the entity that is not property rental business.

4

For the purposes of this Part an asset is involved in property investment business if—

a

it is an estate, interest or right in or over land by the exploitation of which property rental business is conducted;

b

it consists of shares owned by the open-ended investment company in a UK-REIT; or

c

it consists of shares F2or units owned by the open-ended investment company in an entity within regulation 69F(1)(c).