Part 12Real Estate Investment Trusts

Chapter 2Requirements for being a UK REIT

Being a UK REIT in relation to an accounting period

527Being a UK REIT in relation to an accounting period

1

This section sets out the requirements that must be met if a group or company is to be a UK REIT in relation to an accounting period.

2

In order for a group of companies in respect of which a notice has been given under section 523 to be a group UK REIT in relation to an accounting period—

a

each of the conditions in section 528 (conditions for company) must be met in relation to the principal company throughout the accounting period,

b

the group must throughout the period have property rental business in relation to which conditions A and B in section 529 are met (whether or not the group also has other business),

c

the condition in section 530 (distribution of profits) must be met in relation to the period,

d

conditions A and B in section 531 (balance of business) must be met in relation to the period, and

e

the principal company must prepare for the period, and submit to an officer of Revenue and Customs, financial statements under section 532.

3

In order for a company which has given a notice under section 524 to be a company UK REIT in relation to an accounting period—

a

each of the conditions in section 528 (conditions for company) must be met in relation to the company throughout the accounting period,

b

the company must throughout the period have property rental business in relation to which conditions A and B in section 529 are met (whether or not the company also has other business),

c

the condition in section 530 (distribution of profits) must be met in relation to the period, and

d

conditions A and B in section 531 (balance of business) must be met in relation to the period.

4

Subsections (2) and (3) are subject to any relaxation of any condition in section 525, 558 or 559 or Chapter 8.