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.