Taxation of Chargeable Gains Act 1992 Schedule 5AAA paragraphs 35–36

Relationship between rules in this Part and REIT rules in Part 12 of CTA 2010

Section 35–36 deals with how the exemptions available to qualifying offshore collective investment vehicles interact with the separate tax exemptions available to UK Real Estate Investment Trusts (REITs), ensuring that gains are not doubly exempted under both regimes.

• The offshore fund exemptions in this Part of the Schedule cannot exempt any gain that already qualifies for exemption under the UK REIT regime
• Where a joint venture company sits within both a group UK REIT structure and an offshore fund election, a two-step calculation determines which exemption applies and prevents overlap
• The offshore fund exemption only covers the excess of the amount it would exempt over the amount already exempted under the REIT rules
• A company is treated as covered by the offshore fund election if the disposal in question is one to which the exemption rules for entities in which the fund invests apply

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