Real estate investment trusts
These sheets are designed to analyse and report the income and losses of a Real Estate Investment Trust (REIT). Within the company calculation, the
REIT summary information
and Company financial statements reporting
sheets can be developed once the computation is set as a REIT. REIT Total tax exempt profits
and Charge in respect of distribution to person with excess holding are available
in that menu when the REIT summary information
sheet is developed.To create a REIT business the user will first need to develop the
REIT summary information
sheet then on the Adjustment of profit sheet
in business type select Property rental business (tax-exempt)
from the drop-down. To finish the process on the Permanent information
sheet in the “Type of CT return form” dropdown select either REIT C - residual company
or REIT C - tax-exempt company
.In the group module, the REIT sheets are developed from the
Insert sheet
menu. After inserting the REIT summary information
sheet the following sheets are inserted automatically:- REIT summary information
- Group financial statements reporting
- Tax-exempt summary, interest cover and PID requirement
- Summary and balance of business tests
- Notes to HMRC e-filing statement
- REIT distributions summary
- Analysis of REIT distributions
Each company REIT must be attached to a group for HMRC reporting purposes as this is where the necessary report is generated. This will apply for single company REIT's as well.
Completing the Sheets - Company
REIT summary information
The purpose of this sheet is to gather Information for the CT600 and to verify that the relevant conditions are met. All the fields that are required to fill in are manual entries. There are fields for company conditions under CTA 2010 s528 and CTA 2010 s529. Conditions are set up to default as 'Yes' and it is up to the user to change them accordingly.
REIT Total tax exempt profits
This sheet is used to calculate all the profits for the tax exempt REIT business. All the values are linked automatically and an additional column will be added for each period. When any gains or losses are entered using the
Chargeable disposal
sheet the Tax exempt disposal (REIT)
option must be selected, at the foot of the sheet, to link it to the REIT Total tax exempt profits
sheet.Company financial statement reporting
This sheet is manual entry and is required by HMRC for each REIT. The sheet will link to group where the data is collated with any other REIT’s within the group and where the necessary report can be generated.
Charge in respect of distribution to person with excess holding
This sheet is manual entry and calculates any charges in connection with distributions to persons with excess holdings. The sheet doesn’t currently pass a charge through to the
Miscellaneous income
sheet so a manual entry will be required.CT600 REIT
This is the additional CT600 form that is required for the Tax exempt business, all the information that is required for the form is populated on the
REIT summary information
sheet.Completing the Sheets – Group
REIT summary information
All the fields in
REIT summary information
in group are data entry so the user can complete all the required information.Group financial statements reporting
This sheet prepares the XML submission to HMRC. It pulls in and collates the data from the individual entity
Company financial statement reporting
sheets. For each company in the group an HMRC – e-filing statement - subsidiary analysis
sheet will need to be developed to enable the preparation of the XML submission for HMRC.When the group file is rolled forward the subsidiary analysis sheets will initially not be inserted so the client will need to carry out the following steps:
- Ensure all entity columns are inserting onto theGroup financial statements reportingsheet (the client can select Refresh > Source calculation in the group to do this) – if the client has the entities and group in separate datasets and rolls the entities forward first, they can skip this step.
- To then insert the subsidiary analysis sheets the client will need to select Refresh > Manage Sources, then select Full Refresh, the sheets should then be inserted.
Tax-exempt summary, interest cover and PID requirement
This sheet is automated and carries out tests based on the amounts gathered on the
Group financial statements
reporting sheet. Any adjustments required due to excess financing costs calculated will need to be manually entered on the Miscellaneous income
sheet of the principal company.Summary and balance of business tests
This sheet is automated and carries out the tests based on the amounts gathered on the
Group financial statements reporting
sheet.Notes to HMRC e-filing statement
This sheet is used to add any additional notes or comments to HMRC that the user wants to include with the e-filling.
REIT distributions summary
This sheet is designed to summarise information included on the
Analysis of REIT distributions
sheet.Analysis of REIT distributions
The purpose of this sheet is to allocate distributions made by the REIT to the various categories as set out by CTA2010 s550. All the distributions are allocated automatically but it is possible to manually override category 'b' in the right hand column of the sheet. Distributions are split between those paid before the accounting period, those paid in the accounting period and any that are paid after the accounting period. Each of the sections can be expanded by inserting additional rows.