A group may be involved in a joint venture carried on via a company. If there is a Joint Venture Look-Through notice in place (see GREIT13015), then the group (referred to as the venturing group) includes the profits etc of the joint venture company in the financial statements for G (tax-exempt) in the same way as it does for the same items for companies that are members of the venturing group (regulation 12 SI 2006/2866).
If the entity is transparent for tax purposes (e.g. a UK
partnership), the group’s share of the profits etc to the
extent they derive from qualifying property rental business, are
included in the financial statements for G (tax-exempt).
If the vehicle is not transparent (e.g. a company that is
less than 75% owned or an OEIC) then will be no entries in
connection with it in the financial statements for G (tax-exempt).
The value of the interest in the entity and in any income
arising from that interest will be part of G (residual).
