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Home / Simons-Taxes /Corporate tax /Part D7A Other special sectors /Division D7.11 Real estate investment trusts (REITs) /REIT status—qualifying conditions / D7.1104 Conditions for company
Commentary

D7.1104 Conditions for company

Corporate tax

D7.1104 Conditions for company

For a company to become a company UK REIT it must meet the conditions set out below. In addition it must not exceed the permitted profit : financing-cost ratio requirement. Both these are discussed below.

Statutory conditions

A company may give notice to HMRC that it wants the REIT legislation to apply only if, at the time of the notice, it meets Company Conditions A, B, C, E and F throughout its first accounting period1.

While the regime applies to the company, it must generally satisfy all the Company Conditions A to F throughout each accounting period2.

There are exceptions however for Condition C (which need only be met for part or all of the first day it is a REIT and throughout the remainder of the period3) and for Condition D (which for notices specifying entry to the regime on or after 17 July 2012 does not have to be met for the first three years4. The conditions are as follows:

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    •ÌýÌýÌýÌý Condition A – it

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