Part 12Real Estate Investment Trusts
Chapter 4Entering the UK REIT regime
540Election to treat notional income as arising in instalments
1
A company may elect to have the amount of notional income mentioned in section 538(1) treated as arising in 4 instalments, the first on the date of entry and the other 3 on the first three anniversaries of that date.
2
For this purpose section 539(2) has effect as if the percentage referred to were—
a
0.50% for the first instalment,
b
0.53% for the second instalment,
c
0.56% for the third instalment, and
d
0.60% for the fourth instalment.
3
If a company makes an election under subsection (1)—
a
notice of the election must be given to an officer of Revenue and Customs with the notice under section 523 or 524 (as the case may be), and
b
the election cannot be revoked.
4
Subsection (5) applies if—
a
a company makes an election under subsection (1), and
b
before the third anniversary of entry, the company ceases to be, or to be a member of, a UK REIT.
5
Any remaining instalments become chargeable immediately.
6
The Treasury may by regulations amend a percentage specified in subsection (2) in order to reflect a change in interest rates; but any such regulations are not to have effect in relation to elections made before the regulations come into force.