Section 533 | Financial statements: supplementary

From legislation.gov.uk

(1)A financial statement under section 532(2)(a) or (c) must specify, in relation to ... the group—^F1

(a)profits (calculated in accordance with international accounting standards),

(b)expenses (calculated in accordance with international accounting standards),

(c)profits before tax excluding gains or losses on property (whether realised or not) calculated in accordance with international accounting standards, ...^F2

(ca)the items specified in section 531(4)(b) to (d), and^F3

(d)assets , including assets within subsection (1ZA), valued—^F4

(i)at the beginning of the accounting period,

(ii)in accordance with international accounting standards,

(iii)using fair value where there is a choice, and

(iv)ignoring liabilities secured against or otherwise relating to the assets.

(1ZA)Assets are within this subsection if they are held solely—^F5

(a)in connection with the items mentioned in section 531(4)(b) and (c), or^F5

(b)as a result of compliance with planning obligations entered into as mentioned in section 531(4)(d).^F5

(1A)The profits and gains of the UK property rental business of a non-UK member of the group are to be treated as if they were profits and gains of a UK resident member of the group for the purposes of a financial statement under section 532(2)(a).^F6

(1B)Subsection (1C) applies where in the accounting period for which statements are prepared under section 532(2) profits of the group’s property rental business are less than 80% of the sum of—^F7

(a)the profits of property rental business of the group, and^F7

(b)the profits of residual business of the group.^F7

(1C)In addition to being specified in relation to the group, the matters mentioned in subsection (1)(a) to (ca) must be specified in a financial statement under section 532(2)(a) or (c) in relation to each member of the group.^F7

(1D)For the purposes of establishing whether subsection (1C) applies—^F7

(a)the references to profits in subsection (1B) are to profits determined in the same way as profits are determined in accordance with section 531(4);^F7

(b)any expenses relating to both property rental business and residual business are to be apportioned on a just and reasonable basis.^F7

(1E)Where the effect of subsections (1B) and (1C) is that there is no requirement to specify in a financial statement for an accounting period under section 532(2)(a) or (c) the matters mentioned in subsection (1)(a) to (ca) in relation to each member of a group, it is to be assumed that the group meets condition A in section 531(1) in relation to that accounting period.^F7

(1F)Subsection (1G) applies where, at the beginning of the accounting period for which statements are prepared under section 532(2), the sum of—^F7

(a)the value of the assets relating to property rental business, and^F7

(b)the value of the assets relating to residual business so far as consisting of cash or relevant UK REIT shares,^F7

is less than 80% of the total value of assets held by the group.

(1G)In addition to being specified in relation to the group, the matters mentioned in subsection (1)(d) must be specified in a financial statement under section 532(2)(a) or (c) in relation to each member of the group.^F7

(1H)For the purposes of establishing whether subsection (1G) applies, references to assets in subsection (1F) are to the assets excluding—^F7

(a)assets held solely in connection with the items mentioned in section 531(4)(b) and (c), and^F7

(b)assets held solely as a result of compliance with planning obligations entered into as mentioned in section 531(4)(d).^F7

(1I)Where the effect of subsections (1F) and (1G) is that there is no requirement to specify in a financial statement for an accounting period under section 532(2)(a) or (c) the matters mentioned in subsection (1)(d) in relation to each member of a group, it is to be assumed that the group meets condition B in section 531(5) in relation to that accounting period.^F7

(2)A financial statement under section 532(2)(b) must specify profits (calculated in accordance with section 599) for each member of the group.

(3)If a non-member of the group holds a percentage of the beneficial interest in a member of the group (other than the principal company), the financial statements under section 532(2) must exclude that percentage of profits, expenses, gains, losses, assets and liabilities of the member.

(4)Percentages of beneficial interest for the purposes of subsection (3) are to be determined by reference to beneficial entitlement to profits available for distribution to equity holders.

(5)The Commissioners for Her Majesty's Revenue and Customs may by regulations—

(a)make further provision relating to the content of a financial statement under section 532,

(b)prescribe the form of a financial statement, and

(c)specify a time before which a financial statement must be submitted to an officer of Revenue and Customs.

(6)Regulations under subsection (5)(a) may in particular—

(a)permit or require apportionment or otherwise prescribe or refer to accounting practice;

(b)provide for the inclusion or exclusion of specified profits, expenses, gains, losses, assets and liabilities;

(c)make provision about the treatment of an interest in a business held by a member.

Notes

F1
Words in s. 533(1) omitted (1.4.2022 in relation to accounting periods (within the meaning of Part 12 of CTA 2010) that begin on or after that date) by virtue of Finance Act 2022 (c. 3), Sch. 3 paras. 3(2)(a)(i), 6(1)
F2
Word in s. 533(1) omitted (1.4.2022 in relation to accounting periods (within the meaning of Part 12 of CTA 2010) that begin on or after that date) by virtue of Finance Act 2022 (c. 3), Sch. 3 paras. 3(2)(a)(ii), 6(1)
F3
S. 533(1)(ca) inserted (1.4.2022 in relation to accounting periods (within the meaning of Part 12 of CTA 2010) that begin on or after that date) by Finance Act 2022 (c. 3), Sch. 3 paras. 3(2)(a)(iii), 6(1)
F4
Words in s. 533(1)(d) inserted (1.4.2022 in relation to accounting periods (within the meaning of Part 12 of CTA 2010) that begin on or after that date) by Finance Act 2022 (c. 3), Sch. 3 paras. 3(2)(a)(iv), 6(1)
F5
S. 533(1ZA) inserted (1.4.2022 in relation to accounting periods (within the meaning of Part 12 of CTA 2010) that begin on or after that date) by Finance Act 2022 (c. 3), Sch. 3 paras. 3(2)(b), 6(1)
F6
S. 533(1A) inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 114
F7
S. 533(1B)-(1I) inserted (1.4.2022 in relation to accounting periods (within the meaning of Part 12 of CTA 2010) that begin on or after that date) by Finance Act 2022 (c. 3), Sch. 3 paras. 3(2)(c), 6(1)