Corporation Tax Act 2010

Early exit U.K.

581 Early exit by notice U.K.

(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.

582 Early exit U.K.

(1) This section applies if—

(a) a group or a company ceases to be a UK REIT as a result of section 572 or 578, and

(b) the group or company has been a UK REIT for a continuous period immediately before cessation of less than 10 years.

(2) An officer of Revenue and Customs may direct—

(a) that a provision of this Part applies in relation to the group or company with a specified modification, or

(b) that a provision of an enactment relating to corporation tax applies, does not apply or applies with modifications in relation to the group or company.

(3) A direction under subsection (2)(a) may in particular—

(a) alter the time at which the group or company is to be taken to cease to be a UK REIT in accordance with section 572 or 578;

(b) disapply or alter the effect of section 534(1) or (2)[F1 , 535(1) or 535A].

(4) A direction under subsection (2)(b) may in particular prevent all or a specified part of a loss, deficit or expense from being set off or otherwise used at all or in a specified manner.

(5) In the case of a group, a direction under subsection (2) may relate to the group as a whole or to one or more members.

(6) An appeal may be made—

(a) in the case of a group in relation to which a direction is given, by the principal company of the group,

(b) in the case of a company in relation to which a direction is given, by the company.

(7) On an appeal under subsection (6) that is notified to the tribunal, the tribunal may—

(a) quash the direction,

(b) affirm the direction, or

(c) vary the direction.

Textual Amendments

F1 Words in s. 582(3)(b) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 119