Part 12Real Estate Investment Trusts
Chapter 7Gains etc
Demergers
558Demergers: disposal of asset
1
This section applies in the case of a company UK REIT if—
a
the company (“C”) disposes of an asset involved in its property rental business to a 75% subsidiary (“S”) of C,
b
C (so far as it carries on residual business) disposes of its interest in S to another company (“P”),
c
on the date when P acquires the interest in S, P gives a notice under section 523 specifying a date that falls within the post-disposal period, and
d
the group of which S is a member becomes a group UK REIT from the specified date.
2
“The post-disposal period” means the period of 6 months beginning with the date of the disposal of the asset by C.
3
P may give a notice under section 523 in accordance with subsection (1)(c) even if it does not expect to meet conditions F2 C, E and F in section 528 throughout accounting period 1.
4
Sections 536 and 537 (effects of entry) F3... do not apply to the group of which S is a member—
a
in relation to the asset disposed of by C, or
b
in relation to business conducted by the exploitation of that asset.
5
Sections 555 and 556 (movement of assets out of ring fence) do not apply to the disposal of the asset by C.
6
But if, at the end of the post-disposal period, conditions F1C, E and F in section 528 are not met in relation to P, subsections (4) and (5) are to be treated as not having had effect.