Part 12Real Estate Investment Trusts

Chapter 8Breach of conditions in Chapter 2

561Notice of breach of relevant Chapter 2 condition

(1)

The principal company of a group UK REIT must notify an officer of Revenue and Customs as soon as reasonably practicable if a relevant Chapter 2 condition ceases to be met in relation to the principal company or (as the case may be) the group.

(2)

A company UK REIT must notify an officer of Revenue and Customs as soon as is reasonably practicable if a relevant Chapter 2 condition ceases to be met in relation to the company.

(3)

Each of the following is a “relevant Chapter 2 condition”—

  • conditions C and D in section 528 (conditions for company),

  • conditions A and B in section 529 (property rental business),

  • the condition in section 530 (distribution of profits), and

  • conditions A and B in section 531 (balance of business).

(4)

A notification under subsection (1) or (2) must include—

(a)

the date on which the condition first ceased to be met and the date (if any) on which it was met again,

(b)

a description of the breach, and

(c)

details of the steps (if any) taken by the company to prevent a recurrence of the breach.