Regulation 10 Conditions

(1)

The conditions are as follows.

Condition 1

The venturing group is carrying on a joint venture with another company or person.
Condition 2

The joint venture takes the form of a company.
Condition 3

The joint venture company is carrying on a property rental business as defined in section 104.
Condition 4

One or more members of the venturing group are beneficially entitled in the aggregate to 40% or more of the profits available for distribution to equity holders in the joint venture company.
Condition 5

One or more members of the venturing group are beneficially entitled to 40% or more of the assets of the joint venture company available to equity holders in the event of a winding up.
Condition 6

The property rental business carried on by the joint venture company does not involve property that would fall, in accordance with generally accepted accounting practice, to be described as owner-occupied.
Condition 7

The joint venture company would satisfy Conditions 1 and 2 in section 108 (conditions for balance of business) if references in that section to the “tax-exempt business” and the “company” were read as references to the property rental business of the joint venture company.

(2)

For the purposes of Conditions 6 and 7 owner-occupied property includes property held by the joint venture company and occupied by a member of the venturing group.

(3)

For the purposes of these Regulations the property rental businesses of the venturing group and the joint venture company shall be treated as a single business.