Section 564 — Corporation Tax Act 2010: Breach of condition as to distribution of profits

Breach of condition as to distribution of profits 564 1 Subsection (2) applies if the condition in section 530 (distribution of profits) is not met in relation to an accounting period.

2 The breach is to be ignored; but the amount given by section 565 (“the section 565 amount”) is charged to corporation tax under the charge to corporation tax on income.

3 The section 565 amount is to be treated as profits of residual business—

a of the principal company of the group UK REIT, or b of the company UK REIT, as the case may be.

4 Accordingly, it is charged to corporation tax at the main rate of corporation tax. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9 No loss, deficit, expense or allowance may be set off against the section 565 amount.

10 In this section and section 565, “ distribution ” is to be read in accordance with section 530(6A) and (6B).