Certain conditions can be breached by a company UK REIT without the company being excluded from the REIT regime albeit that, further to the breach, the regime may apply to the company with certain modifications.
Although other breaches do lead to automatic termination.
Breaches—no automatic exclusion
There is not always an automatic exclusion from the REIT regime if a company breaches certain conditions, although they are subject to the termination by notice powers of HMRC contained in CTA 2010, s 572 (see D7.1140). The relevant conditions are:
- Ìý
•ÌýÌýÌýÌý conditions C and D of the company conditions, ie those relating to being admitted to trading on a recognised stock exchange and not being a close company (D7.1104)1
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•ÌýÌýÌýÌý the further condition relating to shares (D7.1104)2
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•ÌýÌýÌýÌý the property rental business conditions (D7.1105)3
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•ÌýÌýÌýÌý the distribution of profits condition (D7.1105A)4, and
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•ÌýÌýÌýÌý the balance of business conditions (D7.1106) 5
The conditions above are each referred to as a 'relevant Chapter 2 condition'6.
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Web page updated on 17 Mar 2025 16:25