Regulation 4 Interpretation: specific terms

(1)

“equity holder” in relation to a member of a joint venture group means a person who—

(a)

holds ordinary shares in the member, or

(b)

is a loan creditor of the member in respect of a loan which is not a normal commercial loan within the meaning of paragraph 1(5) of Schedule 18 to the Income and Corporation Taxes Act 1988^f1.

(2)

References to profits or assets available for distribution to equity holders in a member of a joint venture group do not include a reference to any profits or assets available for distribution to an equity holder other than as such.

(3)

In relation to a joint venture group—

(a)

“JVG (property rental business)” means the group while a notice under regulation 5 or regulation 17 applies to it in so far as it carries on property rental business which satisfies Conditions 1 and 2 of section 107, as that section is modified by paragraph 6 of Schedule 17^f2 but with references to the group in that paragraph treated as references to the joint venture group, and

(b)

“JVG (residual)” means the group in so far as it carries on business that is not property rental business.

(4)

In relation to a member of a joint venture group, a reference to property rental business does not include property that is let by the member—

(a)

to a venturing company which gives notice under regulation 5 in respect of that member, or

(b)

to a member of a venturing group, where the principal company of the venturing group gives notice under regulation 17 in respect of that member.

(5)

A reference to the UK business of a joint venture group is a reference to—

(a)

the property rental business of the UK resident members of the group, and

(b)

the property rental business in the United Kingdom of other members.

(6)

A reference to a UK resident company is a reference to a company which—

(a)

is resident in the United Kingdom, and

(b)

is not resident in another place in accordance with the law of that place relating to taxation.

Annotations

Footnotes

f1: 1988 c. 1; paragraph 1(5) of Schedule 18 was amended by section 101(3) of the Finance Act 1989 (c. 26).
f2: Section 107 of, and paragraph 6 of Schedule 17 to, the Finance Act 2006 were amended by paragraphs 3 and 16(3) of Schedule 17 to the Finance Act 2007.