Corporation Tax Act 2010 section 554

Regulations: distributions to holders of excessive rights

Section 554 gives the Treasury the power to make regulations dealing with situations where a UK REIT makes a distribution to a holder of excessive rights.

• The Treasury may make regulations where a principal company of a group UK REIT, or a company UK REIT, makes a distribution to a holder of excessive rights
• Regulations may provide that a tax charge does not arise, or is reduced, depending on whether the company takes or refrains from taking specified actions
• Regulations may require the company to provide HMRC with specified information about the distribution and the persons to or in respect of whom it is made
• A holder of excessive rights is a person whose shareholding or interest exceeds the permitted threshold, as defined separately in section 553