Corporation Tax Act 2010 section 594

Modifications of Chapter 3

Section 594 modifies the rules on profits and gains in Chapter 3 when they apply to joint venture companies or members of joint venture groups within the UK REIT regime.

• The standard profit rules in section 534 are altered for joint venture companies and joint venture group members so that certain amounts are simply ignored rather than being given a deemed tax treatment.
• The standard gains rules in section 535 are similarly altered for joint venture companies and joint venture group members, with the same substitution applying.
• In both cases, the modification replaces wording that would treat amounts in a particular way with wording that instead disregards those amounts entirely for the purposes of the relevant section.
• These modifications ensure that the property rental business carried on through joint venture structures is assessed appropriately under the UK REIT framework.