Section 550 | Attribution of distributions

(1)Subsection (2) applies to—

(a)distributions made by the principal company of a group UK REIT, and

(b)distributions made by a company UK REIT.

(2)The distributions are to be attributed—

(a)first, to distributions in satisfaction of the requirement of section 530(1)(a) or 530(4)(a) (as the case may be),^F1

(aa)second, to distributions in satisfaction of the requirement of section 530(1)(b) or 530(4)(b) (as the case may be),^F1

(b)third , so far as the company determines, to distribution of amounts which derive from activities of a kind in respect of which corporation tax is chargeable in relation to income,^F2

(c)fourth , to distribution of profits of property rental business (calculated in accordance with section 599),^F3

(d)fifth , to distribution of relevant non-chargeable gains, and^F4

(e)sixth , to other distributions.^F5

(3)In subsection (2)(d) “relevant non-chargeable gains” means—^F6

(a)in the case of a group, gains accruing to property rental business of a member of the group, and

(b)in the case of a company, gains accruing to property rental business of the company,

which as a result of section 535 or 535A are not chargeable gains.

(4)In determining the amount of relevant non-chargeable gains for the purposes of this section, section 269ZBA (restriction on deductions) is to be ignored.^F7