IFM21020 - Real Estate Investment Trust : Background: Key Concepts: Property Rental Business
For the purposes of the UK-REIT regime, property rental business is defined at CTA2010/S519 as:
business that is or forms part of
1 a. a UK property business (within the meaning of CTA2009/S205), or
b. an overseas property business (within the meaning of CTA2009/S206)
subject to specified exclusions listed in CTA2010/S604 and 605
This limits 바카라 사이트˜property rental business바카라 사이트™ to the generation of income from land as a source of rents or other receipts as defined in CTA 2009/S207 and therefore, income arising as a result of the occupation of land, which is not chargeable as property business income are not included.
For example, farming or running a hotel are chargeable as trades so cannot be within the definition of 바카라 사이트˜property rental business바카라 사이트™. For more details on the types of business or income that are excluded from being within the definition of property rental business, see IFM21025.
Some types of business or income, which although chargeable to tax as property income, are nonetheless, excluded from the definition of property rental business, such as rent from the siting of an oil pipeline. These are listed in CTA 2010/S604 and 605 (see IFM21025 onwards for details).
A property business with 바카라 사이트˜tied premises바카라 사이트™ as defined in CTA 2009/S42 may fall within the definition of a 바카라 사이트˜property rental business바카라 사이트™ by virtue of CTA 2010/S519(2) which provides that the requirement that income in connection with 바카라 사이트˜tied premises바카라 사이트™ is treated as part of the trade is ignored.
Detailed guidance on the property business rules can be found in the Property Income Manual (PIM).
(See IFM24005)
바카라 사이트˜Qualifying바카라 사이트™ or 바카라 사이트˜ring fence바카라 사이트™ activities
Activities that come within the CTA 2010/S519 definition of 바카라 사이트˜property rental business바카라 사이트™ are generally referred to as 바카라 사이트˜qualifying바카라 사이트™ activities. Only when the business also qualifies as tax-exempt, should the activities be referred to as being 바카라 사이트˜ring fence바카라 사이트™ activities.
바카라 사이트˜Property rental business바카라 사이트™ for Group REITs
For single company UK-REITs, the property rental business and the ring fence activities are one and the same. For a group of companies that is a UK-REIT, the two may not be. The term 바카라 사이트˜property rental business바카라 사이트™ for a group can include overseas property and property held by non-resident members of the group. Such income is only part of the 바카라 사이트˜ring fence바카라 사이트™ activities of the group and exempted from UK tax by CTA 2010/ Part 12 if those activities are within the charge to UK taxation ,for example, a non-resident subsidiary which carries on UK property rental activities.