AIFs: Property authorised investment funds (Property AIFs): tax treatment of Property AIFs and distributions: company tax return
As with other authorised investment funds, Property AIFs are within the charge tocorporation tax and must submit a single company tax return after the end of eachaccounting period.
The entries for the on the corporation tax return form should relate only to the residualbusiness of the Property AIF, that is everything not within thetax-exempt ring fence.
However, whilst the return to be delivered is the same as that required from othercorporate bodies, the following additional documents are required.
Documents to be included with company tax return (regulation 69Z25 SI 2006/964)
The manager must include documents A and B in its company tax return:
Document A is a calculation of the net income of the tax-exempt part of the business andof the residual part of the business, in accordance with regulations 69Z1 to 69Z3 SI2006/964.
Document B is a reconciliation between:
- the net income of the company (see regulation 69Z SI 2006/964 and CTM48832)), and
- the total income shown in the distribution accounts as attributed (to the three different categories of distribution ) in accordance with regulation 69Z14 SI 2006/964 (see CTM48839).
In addition to submitting a company tax return the Property AIF must also submitreturns detailing tax deducted from certain distributions, as described at CTM48864.
Where should company tax returns be submitted to?
Company tax returns should be submitted to:
Authorised Investment Funds Centre
Local Compliance Eastern England
5 Young Street