GREIT13055 - Joint ventures: Joint Venture Look-Through Notice: joint venture is a non-resident single company

There are no restrictions on the country of residence of the joint venture company. Regulation 15 SI 2006/2866 applies the rules in paragraph 32 Schedule 17 that apply to non-resident members of Group REIT to the non-resident joint venture company. The same conditions for giving notice apply as for UK resident joint venture companies.

As with non-resident members of the Group REIT, the relevant portion of the assets, profits etc of the non-resident joint venture company are brought into account for the Balance of Business and Tax-exempt business conditions. The relevant portion is the interest in the joint venture company held by the venturing company or group.

The relevant portion of the profits of the UK property rental business of the joint venture company are exempt from UK tax. The income is included in the amount out of which the venturing company (or principal company of a venturing group) must pay 90% as a PID.

To the extent dividends paid by the joint venture company to UK group members represent those tax-exempt profits; they are exempt from tax in the hands of the UK holding company.

The Non Residents Landlord Scheme does not apply to rents paid by UK tenants to a non- resident joint venture company in respect of which a ‘look-through’ notice is effective.

These concepts are explained in more detail in GREIT13025 onwards.