Part 12 Real Estate Investment Trusts

Chapter 9 Leaving the UK REIT regime

Notice to leave regime

575 Notice under section 572: breach of conditions as to property rental business
(1) An officer of Revenue and Customs may give a notice under section 572(1) if, in 3 consecutive accounting periods, there is a breach of the property rental business condition (see section 561(3A)).
Words in s. 575(1) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 3(5)(a)
(2) An officer of Revenue and Customs may also give a notice under section 572(1) if, during the relevant 10-year period, section 563(2) has been relied on—
(a) more than twice in relation to condition A in section 529, ...
Word in s. 575(2) omitted (11.7.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 3(5)(b)(i)
(b) more than twice in relation to condition B in that section , or
S. 575(2)(c) and word inserted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 3(5)(b)(ii)
(c) more than twice in relation to Condition C in that section.
(3) “The relevant 10-year period” is the period of 10 years beginning with the first day on which section 563(2) was relied on.
(4) The following rules apply for the purposes of subsection (2)—
Rule 1 If a breach of condition B in section 529 is a necessary consequence of a breach of condition A in that section in the same accounting period, the breach of condition B is to be ignored (and accordingly the UK REIT is not to be treated as having relied on section 563(2) in relation to the breach of condition B).
Rule 2 If a breach of the property rental business condition lasts for—
(a) more than one accounting period, but
(b) not more than two accounting periods,
the UK REIT is to be treated as having relied on section 563(2) only once.
Words in s. 575(4) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 3(5)(c)