Income Tax Act 2007 section 974

Regulations under section 973

Section 974 sets out the detailed scope of the regulation-making powers under section 973, which govern how UK Real Estate Investment Trusts (REITs) must handle income tax deductions when making distributions from their property rental business profits.

• Regulations may require UK REITs to deduct income tax at the basic rate before paying distributions, while allowing certain categories of shareholder to receive distributions gross (without deduction)
• The regulations can cover the mechanics of the withholding system, including how to calculate deductions, when distributions are treated as made, payment periods and deadlines, and interest on late payments
• Distributions from property rental business profits remain within scope even after a company or group has ceased to be a UK REIT, and deemed distributions under section 530(6) of CTA 2010 are also caught
• For the purposes of these regulations, "profits" includes gains (including chargeable gains), and the regulations may apply generally or be tailored to specific cases, with flexibility to include transitional and supplementary provisions