Section 586 — Corporation Tax Act 2010: Notice for Part to apply: joint venture company

Notice for Part to apply: joint venture company 586 1 The principal company of a group UK REIT may give notice that this Part is to apply (in accordance with this Chapter) in relation to property rental business carried on by a joint venture company.

2 A company UK REIT may give notice that this Part is to apply (in accordance with this Chapter) in relation to property rental business carried on by a joint venture company.

3 A company may give a notice under subsection (1) or (2) only if the 40% tests are met in relation to the joint venture company.

4 The 40% tests are met in a case within subsection (1) if members of the group UK REIT are together beneficially entitled to—

a at least 40% of the profits available for distribution to equity holders in the joint venture company, and b at least 40% of the assets of the joint venture company available to equity holders in the event of a winding up.

5 The 40% tests are met in a case within subsection (2) if the company UK REIT is beneficially entitled to—

a at least 40% of the profits available for distribution to equity holders in the joint venture company, and b at least 40% of the assets of the joint venture company available to equity holders in the event of a winding up.

6 A notice under subsection (1) or (2)—

a must specify the joint venture company concerned, b may be given only with the consent of that joint venture company, c must specify a date from which this Part is to apply in relation to the property rental business, and d must be given in writing to an officer of Revenue and Customs before the date specified under paragraph (c).

7 A company giving a notice under subsection (1) or (2) may do so—

a at the same time as giving a notice under section 523 or 524 (as the case may be), or b at any later time when the group or company (as the case may be) is a UK REIT.

8 See section 588 for provision about the effect of a notice under this section.