Corporation Tax Act 2010 section 600

Power to make regulations about cases involving related persons

Section 600 gives the Treasury the power to make regulations dealing with relationships between a REIT company and another person, particularly to prevent arrangements that artificially exclude companies with non-qualifying activities from a group in order to satisfy the balance of business tests.

• The Treasury may make regulations where it considers it expedient in the public interest, covering activities or situations involving a relationship between a REIT company and another person
• The regulations can treat a specified person as forming part of a group UK REIT, or extend provisions that apply to group members so they also apply to specified persons, with or without modifications
• Regulations may apply retrospectively to accounting periods ending on or after the date the regulations are made
• Any regulations require prior approval by the House of Commons through the affirmative resolution procedure, meaning a draft statutory instrument must be laid before and approved by the House before the regulations can be made