Part 12Real Estate Investment Trusts

Chapter 9Leaving the UK REIT regime

Notice to leave regime

574Notice under section 572: serious breach

1

An officer of Revenue and Customs may give a notice under section 572(1) if the officer thinks that—

a

a breach of a condition in section 529, 530 or 531, or

b

an attempt by a member of the group or (as the case may be) by the company to obtain a tax advantage,

is so serious that the group or company should cease to be a UK REIT.

2

Subsection (3) applies if—

a

the case is one relating to a breach of condition B in section 531 (balance of business: assets) in relation to accounting period 1, and

b

that condition is not met at the beginning of the next accounting period.

3

In that case, section 572(4) has effect as if for paragraph (a) there were substituted—

a

the group or company (as the case may be) is to be taken to have ceased to be a UK REIT on the first day of accounting period 1, and