CG73996G - UK property rich collective investment vehicles: Introduction: Default position for CIVs and their investors
The default position for CIVs is 바카라 사이트“
Irrespective of their legal form, non-corporate CIVs other than partnerships are deemed to be companies and are chargeable to corporation tax on all disposals of UK land (TCGA92/SCH5AAA/paragraph 4). This includes non-UK entities that are transparent for income tax purposes, other than partnerships, such as for example so-called 바카라 사이트˜Baker바카라 사이트™ type Jersey property unit trusts (바카라 사이트˜JPUTs바카라 사이트™), Luxembourg Fonds Commun du Placement (바카라 사이트˜FCPs바카라 사이트™), and Irish common contractual funds (바카라 사이트˜CCFs바카라 사이트™).
The rights of 바카라 사이트˜participants바카라 사이트™ (investors) in such deemed companies are treated as shares (paragraph 4(2)(b)), to link in to the indirect disposal rules in Schedule 1A to TCGA 92 (see CG73997D), so that investors will hold an interest in a UK property rich asset where the CIV itself is UK property rich;
Investors will be treated as having a substantial indirect interest (see CG73997J) where the CIV is UK property rich, whatever the size of their interest, so that (contrary to the position under the core NRCG rules in Schedule 1A TCGA 92) investors with a less than 25% interest will still be within charge (subject to an exception for property funds that are not intended to be and are not marketed as UK real estate funds) (TCGA92/SCH5AAA/paragraph 6).