Corporation Tax Act 2010 section 598

Chapter 10: supplementary

Section 598 provides supplementary definitions and rules for Chapter 10, including the meaning of "equity holder", how percentages of beneficial interest are determined, and an exclusion from property rental business for certain lettings between joint venture parties.

• An "equity holder" in a company is someone who either holds ordinary shares or is a loan creditor in respect of a loan that is not a normal commercial loan.
• Percentages of beneficial interest are worked out by reference to the beneficial entitlement to profits available for distribution to equity holders.
• Where a joint venture company or member of a joint venture group lets property to its venturing company or a member of its venturing group, that letting is excluded from the definition of property rental business.
• The definition of a "normal commercial loan" used to identify non-qualifying loan creditors is the same definition that applies elsewhere in the Act, ensuring consistency for both joint venture companies and joint venture groups.