Section 973 | Income tax due in respect of distributions

From legislation.gov.uk

16 September 2026

(1)The Treasury may make regulations providing for the assessment, collection and recovery of income tax where—

(a)a distribution to which subsection (2) or (3) applies is made, and

(b)tax is or may become chargeable in respect of the distribution (whether by virtue of section 548(5) or (6) of CTA 2010 (distributions: liability to tax) or otherwise).^F1

(2)This subsection applies to a distribution if—

(a)it is made by a company UK REIT, and^F2

(b)it is a distribution of profits or gains (or of both) of the company's property rental business.^F3

(3)This subsection applies to a distribution if—

(a)it is made by the principal company of a group UK REIT, and^F4

(b)it is a distribution of amounts shown in the financial statement under section 532(2)(a) of CTA 2010 (statement of group's property rental business) as—^F5

(i)profits or gains (or both) of UK members of the group, or^F5

(ii)profits or gains (or both) of UK property rental business of non-UK members of the group.^F5

(3A)In this section, section 974 and any regulations under this section, “distribution” is to be read in accordance with section 554A of CTA 2010 (meaning of “distribution”).^F6

(3B)Section 599A of CTA 2010 (amount of distribution consisting of share capital issued in lieu of cash dividend) applies for the purposes of this section, section 974 and any regulations under this section as it applies for the purposes of Part 12 of that Act (Real Estate Investment Trusts).^F6

(4)In this section—^F7

“company UK REIT” and “group UK REIT” have the same meaning as in Part 12 of CTA 2010 (see sections 523(5) and 524(5) of that Act),

“group” and “principal company” have the same meaning as in Part 12 of CTA 2010 (see section 606 of that Act), and

“property rental business” and “UK property rental business” have the same meaning as in Part 12 of CTA 2010 (see sections 519 and 520 of that Act).

(5)References in this section to a UK or non-UK company are to be read in accordance with Part 12 of CTA 2010 (see section 521 of that Act).^F8

(6)In this section “gains” includes chargeable gains.

(7)In relation to references to profits of property rental business, see section 549A of CTA 2010.^F9

Notes

F1
Words in s. 973(1)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 560(2) (with Sch. 2)
F2
Words in s. 973(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 560(3)(a) (with Sch. 2)
F3
Words in s. 973(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 560(3)(b) (with Sch. 2)
F4
Words in s. 973(3) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 560(4)(a) (with Sch. 2)
F5
S. 973(3)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 560(4)(b) (with Sch. 2)
F6
S. 973(3A)(3B) inserted (16.12.2010 with effect in accordance with Sch. 4 para. 12 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 4 para. 2
F7
S. 973(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 560(5) (with Sch. 2)
F8
Words in s. 973(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 560(6) (with Sch. 2)
F9
S. 973(7) inserted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 19 para. 12