Part 12

Real Estate Investment Trusts
Chapter 9

Leaving the UK REIT regime

Early exit

Early exit by notice
581
1
Subsection (6) applies if conditions A, B and C are met.
2
Condition A is that a group or company ceases to be a UK REIT as a result of a notice under section 571.
3
Condition B is that the group or company had been a UK REIT for a continuous period immediately before cessation of less than 10 years.
4
Condition C is that, during the post-cessation period, a relevant company, that is to say—
a
in the case of a group, a member of the group, or
b
otherwise, the company,
disposes of an asset that was involved in property rental business of the relevant company.
5
“The post-cessation period” means the period of two years beginning with the date of cessation.
6
The relevant company's liability to corporation tax is to be determined without regard to—
a
any deemed disposal under section 536(2) that resulted in a gain,
b
any deemed disposal under section 555(2), or
c
any deemed disposal under section 579(4).
7
Subsection (6) also applies if—
a
a company ceases to be a member of a group UK REIT,
b
either—
i
the group has been a group UK REIT for a continuous period of less than 10 years, or
ii
the company has been a member of the group for a continuous period of less than 10 years, and
c
during the post-cessation period the company disposes of an asset that was involved in its property rental business.
8
This section has effect in relation to a non-UK member of a group as if references to property rental business were references to UK property rental business.