http://www.legislation.gov.uk/ukpga/2010/4/section/556Corporation Tax Act 2010An Act to restate, with minor changes, certain enactments relating to corporation tax and certain enactments relating to company distributions; and for connected purposes.texttext/xmlenStatute Law Database2026-04-16Expert Participation2026-03-18 Corporation Tax Act 2010s. 658(1)(d)(e)Finance Act 2010Sch. 6 para. 31Sch. 6 para. 35Corporation Tax Act 2010s. 357CHAFinance Act 2024Sch. 2 para. 14(7)Sch. 2 para. 16(2) Part 12Chapter 75561Subsection (2) applies if—aan asset has been used wholly and exclusively for the purposes of property rental business of a company which is, or is a member of, a UK REIT, ...bthe asset is disposed of in the course of trade for the purposes of residual business of the company, and cif the company is a member of a UK REIT, the disposal is not to another member of the UK REIT.2If this subsection applies—athe deemed sale and reacquisition under section 536(2) is to be ignored, andbthe asset is to be treated as having been disposed of in the course of the company's residual business.3Subsection (2) is to be taken to apply in particular if—aa property acquired by a company which is, or is a member of, a UK REIT has been developed since acquisition,bthe cost of the development exceeds 30% of the ... value of the property ... ,cthe company disposes of the property within the period of 3 years beginning with the completion of the development , anddif the company is a member of a UK REIT, the disposal is not to another member of the UK REIT. 3ZAFor the purposes of subsection (3)(b) the value of a property is to be treated as its fair value (determined in accordance with international accounting standards) at whichever of the following times that value is the greatest—aon entry;bwhen the property was acquired;cthe beginning of the accounting period in which the development commenced. 3ASubsection (3B) applies in the case of a company (“C”) which is, or is a member of, a UK REIT if—aone or more properties acquired (directly or indirectly) by a relevant UK property rich company have been developed since acquisition,bthe cost of the development exceeds 30% of the ... value of the property ...,cC disposes of any of its rights or interests in the relevant UK property rich company,dthe disposal is made within the period of 3 years beginning with the completion of the development, andeif C is a member of a UK REIT, the disposal is not to another member of the UK REIT. 3AAFor the purposes of subsection (3A)(b) the value of a property is to be treated as its fair value (determined in accordance with international accounting standards) at whichever of the following times that value is the greatest—aon entry;bwhen the property was acquired;cthe beginning of the accounting period in which the development commenced. 3BIf this subsection applies, section 535A is not to apply in relation to so much of the amount of a gain accruing on the disposal as relates to the property which has been developed.3CFor the purposes of subsection (3A)—aa company is a “relevant UK property rich company” if, as a result of section 535A, any part of a gain accruing to C on a disposal of a right or interest in the company would not be a chargeable gain, andba relevant UK property rich company acquires property “indirectly” if property is acquired by someone other than the relevant UK property rich company and the property is taken into account in determining the value of the assets of the relevant UK property rich company.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5If a percentage of the gains of property rental business of a member of a group UK REIT is excluded from a financial statement in accordance with section 533(3), that percentage of those gains is to be treated for corporation tax purposes as gains of the member's residual business.6This section has effect in relation to a non-UK member of a group UK REIT as if references to property rental business were references to UK property rental business.7 Sections 535, 535A and 535B are relevant to the tax treatment of any gain arising to a company under this section.S. 556(4) omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 4 para. 35(1) (with Sch. 4 para. 35(2))Word in s. 556(1) omitted (with effect in accordance with Sch. 4 para. 44 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 4 para. 43(2)(a)S. 556(1)(c) and word inserted (with effect in accordance with Sch. 4 para. 44 of the amending Act) by Finance Act 2012 (c. 14), Sch. 4 para. 43(2)(b)S. 556(3)(d) and word inserted (with effect in accordance with Sch. 4 para. 44 of the amending Act) by Finance Act 2012 (c. 14), Sch. 4 para. 43(3)(b)S. 556(3A)-(3C) inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 118(2)Words in s. 556(7) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 22, 42 (with Sch. 4 paras. 43-46)Word in s. 556(3)(b) omitted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 4(2)(a)(6)Word in s. 556(3)(b) omitted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 4(2)(b)(6)S. 556(3AA) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 4(5)(6)Word in s. 556(3A)(b) omitted (in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 4(4)(a)(6)Words in s. 556(3A)(b) omitted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 4(4)(b)(6)S. 556(3ZA) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 4(3)(6)