Section 535 — Corporation Tax Act 2010: Gains

Gains 535 1 A gain on the disposal of an asset is not a chargeable gain if—

a the gain accrues to a company which is, or is a member of, a UK REIT, and b condition A or B is met in relation to the asset.

2 Condition A is that the asset was used wholly and exclusively for the purposes of property rental business of the company.

3 Condition B is that the asset was used during one or more periods of (in total) less than a year—

a partly for the purposes of property rental business of the company, and b partly for the purposes of residual business of the company, but was otherwise used as mentioned in subsection (2).

4 Subsection (5) applies if a gain accrues to a company which is, or is a member of, a UK REIT on the disposal of an asset which for one or more periods of (in total) at least a year has been used—

a partly for the purposes of property rental business of the company, and b partly for the purposes of residual business of the company.

5 Such part of the gain as may reasonably be attributed to property rental business of the company, having regard to—

a the extent to which the asset was used for the different purposes, and b the length of the periods during which it was used for those purposes, is not a chargeable gain.

6 Gains which—

a accrue to residual business of a company which is, or is a member of, a UK REIT, and b are charged to corporation tax, are to be charged at a rate determined without reference to sections 18A and 18B (companies with small profits). 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 If a percentage of the gains of property rental business of a member of a group UK REIT is excluded from a financial statement in accordance with section 533(3), that percentage of those gains is to be treated for corporation tax purposes as gains of the member's residual business.

8 This section has effect in relation to a non-UK member of a group UK REIT as if references to property rental business of the member were to its UK property rental business.

9 This section is to be read as if it were contained in TCGA 1992.