Corporation Tax Act 2010 section 539

Calculation of the notional amount

Section 539 explains how to calculate the notional income amount used for the entry charge when a company joins the UK Real Estate Investment Trust (REIT) regime.

• The notional amount is derived from the total market value of assets involved in the company's property rental business immediately before it enters the UK REIT regime.
• If a percentage of assets is excluded from the financial statements because it belongs to a non-member, that percentage is disregarded when determining the market value figure.
• For UK companies, the tax rate used in the calculation is the main rate of corporation tax.
• For non-UK companies, including non-UK joint venture companies, the tax rate used is the basic rate of income tax.