Paragraph 4

Section 531 (conditions as to balance of business) is amended as follows.

After subsection (4) insert—

“(4A)

In the case of a group, for the purposes of subsections (1) and (2) a distribution falling within section 549A(6) or (8) received by a member of the group is to be treated as profits of a property rental business in accordance with section 549A(1) notwithstanding section 549A(5).

(4B)

In the case of a company, for the purposes of subsections (1) and (3) a distribution falling within section 549A(6) or (8) received by the company is to be treated as profits of a property rental business in accordance with section 549A(1) notwithstanding section 549A(5).”

In subsection (5)(b) after “cash” insert “ or relevant UK REIT shares ”.

In subsection (6)(b) after “cash” insert “ and relevant UK REIT shares ”.

After subsection (8) insert—

“(9)

In this section “relevant UK REIT shares” means—

(a)

in the case of a group UK REIT, shares held by a member of the group in the principal company of another group UK REIT or in a company UK REIT, and

(b)

in the case of a company UK REIT, shares held by the company in the principal company of a group UK REIT or in another company UK REIT.”