527Being a UK REIT in relation to an accounting periodU.K.
(1)This section sets out the requirements that must be met if a group or company is to be a UK REIT in relation to an accounting period.
(2)In order for a group of companies in respect of which a notice has been given under section 523 to be a group UK REIT in relation to an accounting period—
(a)each of the conditions in section 528 (conditions for company) must be met in relation to the principal company throughout the accounting period,
[F1(aa)the condition in section 528A (further condition relating to shares) must be met in relation to the period [F2(but see subsection (3A))],]
(b)the group must throughout the period have property rental business in relation to which conditions A and B in section 529 are met [F3or in relation to which condition C is met] (whether or not the group also has other business),
(c)the condition in section 530 (distribution of profits) must be met in relation to the period,
(d)conditions A and B in section 531 (balance of business) must be met in relation to the period, and
(e)the principal company must prepare for the period, and submit to an officer of Revenue and Customs, financial statements under section 532.
(3)In order for a company which has given a notice under section 524 to be a company UK REIT in relation to an accounting period—
(a)each of the conditions in section 528 (conditions for company) must be met in relation to the company throughout the accounting period,
[F4(aa)the condition in section 528A (further condition relating to shares) must be met in relation to the period,] [F5(but see subsection (3A))]
(b)the company must throughout the period have property rental business in relation to which conditions A and B in section 529 are met [F6or in relation to which condition C is met] (whether or not the company also has other business),
(c)the condition in section 530 (distribution of profits) must be met in relation to the period, and
(d)conditions A and B in section 531 (balance of business) must be met in relation to the period.
[F7(3A)Subsections (2)(aa) and (3)(aa) do not apply in relation to a period, or to any part of a period, in respect of which condition C in section 528 is met as a result of subsection (3)(b) of that section.]
(4)Subsections (2) and (3) are subject to any relaxation of any condition in section 525, 558 or 559 or Chapter 8.
[F8(5)Subsections (2)(a) and (3)(a) are also subject to subsections (6) to (8).
(6)If the accounting period ends during the first 3-year period, condition D in section 528 does not have to be met.
(7)If the accounting period begins, but does not end, during the first 3- year period, condition D in section 528 only has to be met throughout the part of the accounting period falling after the end of the first 3- year period.
(8)In subsections (6) and (7) “the first 3-year period” means the period of 3 years beginning with the date specified in the notice given under section 523 or 524.]
Textual Amendments
F1S. 527(2)(aa) inserted (with effect in accordance with Sch. 4 para. 21 of the amending Act) by Finance Act 2012 (c. 14), Sch. 4 para. 14
F2Words in s. 527(2)(aa) inserted (1.4.2022 in relation to accounting periods (within the meaning of Part 12 of CTA 2010) that begin on or after that date) by Finance Act 2022 (c. 3), Sch. 3 paras. 2(1)(a), 6(1)
F3Words in s. 527(2)(b) inserted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 3(1)(a)
F4S. 527(3)(aa) inserted (with effect in accordance with Sch. 4 para. 21 of the amending Act) by Finance Act 2012 (c. 14), Sch. 4 para. 14
F5Words in s. 527(3)(aa) inserted (1.4.2022 in relation to accounting periods (within the meaning of Part 12 of CTA 2010) that begin on or after that date) by Finance Act 2022 (c. 3), Sch. 3 paras. 2(1)(b), 6(1)
F6Words in s. 527(3)(b) inserted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 4 para. 3(1)(b)
F7S. 527(3A) inserted (1.4.2022 in relation to accounting periods (within the meaning of Part 12 of CTA 2010) that begin on or after that date)) by Finance Act 2022 (c. 3), Sch. 3 paras. 2(1)(c), 6(1)
F8S. 527(5)-(8) inserted (with effect in accordance with Sch. 4 para. 13(2) of the amending Act) by Finance Act 2012 (c. 14), Sch. 4 para. 3