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The principal company of a group UK REIT is required to prepare three financial statements for each accounting period of the principal company¹ and submit them with the company tax return for the relevant period. These financial statements are in addition to the tax returns and statutory consolidated financial statements required to be prepared by the principal company.

The purpose of the financial statements is to enable HMRC to confirm that the REIT group meets certain of the conditions of being within the REIT regime (being the distribution requirement, the profit : financing-cost ratio and the balance of business tests). As such, only certain items of information are required to be included within the statements. Further details regarding the practicalities of the preparation and submission of the financial statements are included in regulations².

The three financial statements relate to³:

1. Ìý

   (a)ÌýÌýÌýÌý the group's property rental business

2. Ìý

   (b)ÌýÌýÌýÌý the group's property rental business in the UK, and

3. Ìý

   (c)ÌýÌýÌýÌý the group's residual business

For