Commentary

D7.1105A Distribution condition

Corporate tax
Corporate tax | Commentary

D7.1105A Distribution condition

Corporate tax | Commentary

D7.1105A Distribution condition

In addition to meeting the conditions set out in D7.1104 and 1105, to be a UK REIT in relation to an accounting period, a company must also meet the distribution condition in respect of the accounting period1.

The distribution condition requires that2:

  1.  

    •     all of a company or groups UK REIT's profits that are UK REIT investment profits are distributed, and

  2.  

    •     90% of profits of the property rental business as calculated for tax purposes after capital allowances and financing costs, are distributed to shareholders, see D7.1115A.

The distribution requirement can be satisfied by the issue of a

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