IFM06130 - Tax elected funds (TEFs): introduction & conditions of membership for the TEF regime: the property condition
Under regulation 69Z46 of SI2006/964, a TEF must not have a UK property business or an overseas property business (as defined in sections 205 and 206 of the Corporation Tax Act 2009, PIM1020 for guidance). A TEF may invest in a property authorised investment fund or UK Real Estate Investment Trust (UK REIT) 바카라 사이트“ see regulation 69Z56.
The property condition does not prevent a TEF from holding debt instruments (bonds, loan or debenture stock) or simple debts (mortgage loans) that are secured on the borrower바카라 사이트™s real property assets. Income received from the debt instrument is interest and not income from a UK or overseas property business.