REIT guidance reflect FA 19 changes
The Tax and Duty Manual providing guidance on the taxation of Real Estate Investment Trusts (REITs), has been updated to reflect changes made by Finance Act 2019.
The changes to the Tax and Duty Manual Part 25a-00-01 are in respect of:
- Applying the “wholly and exclusively” test when calculating profits available for distribution as provided for by section 705HA.
- Use of funds raised and disposal proceeds as provided for by section 705I and section 705IA.
The guidance now also addresses the interaction of the Parent/Subsidiary Directive and the special REIT provisions in respect of the taxation of non-resident shareholders.
See Reven eBrief No. 093/21 for further detail.