Corporation Tax Act 2010 section 591

Conditions as to balance of business

Section 591 requires joint venture companies and joint venture groups involved in UK REIT arrangements to satisfy the same balance of business tests that apply to standalone UK REITs, covering both profits and assets.

• When a joint venture company or joint venture group is brought into the UK REIT regime by notice, it must meet the standard balance of business conditions.
• The profits condition must be satisfied for each accounting period during which the notice is in effect.
• The assets condition must be satisfied at the beginning of each accounting period during which the notice is in effect.
• The balance of business rules are applied as though the joint venture company or group had itself elected into the UK REIT regime directly.