Section 559 — Corporation Tax Act 2010: Demergers: company leaving group UK REIT

Demergers: company leaving group UK REIT 559 1 This section applies in relation to a company if each of conditions A to D is met.

2 Condition A is that the company (“the exiting company”) ceases to be a member of a group UK REIT (“Group 1”).

3 Condition B is that at the time immediately after it ceases to be a member of Group 1—

a the exiting company is a member of another group (“Group 2”) and—

i the principal company of Group 2 meets conditions A and B in section 528, ii Group 2 has property rental business in relation to which conditions A and B in section 529 are met, iii the condition in section 530 is met in relation to the principal company of Group 2, and iv Group 2 meets conditions A and B in section 531, or b the exiting company—

i meets conditions A and B in section 528, ii has property rental business in relation to which conditions A and B in section 529 are met, and iii meets the condition in section 530 and conditions A and B in section 531.

4 Condition C is that—

a in a case within subsection (3)(a), the principal company of Group 2 gives a notice under section 523 no later than the date on which the exiting company ceases to be a member of Group 1, and b in a case within subsection (3)(b), the exiting company gives a notice under section 524 no later than the date on which it ceases to be a member of Group 1.

5 Condition D is that the date specified in the notice under section 523 or 524 (as the case may be) is the same as that on which the exiting company ceases to be a member of Group 1.

6 A company may give a notice under section 523 or 524 in accordance with subsection (4) even if it does not expect to meet conditions C, E and F in section 528 throughout accounting period 1.

7 If this section applies, the exiting company is to be treated as a member of a group UK REIT (or as a company UK REIT) during the period of 6 months beginning with the time when it ceases to be a member of Group 1.

8 If this section applies, the following provisions do not have effect— sections 536 and 537 (effects of entry), ... and sections 579 and 580 (effects of cessation).

9 But if, at the end of the period of 6 months mentioned in subsection (7) conditions C, E and F in section 528 are not met in relation to the principal company of Group 2 or the exiting company (as the case may be)—

a this section does not apply, and b the exiting company is to be treated as having ceased to be a member of a group UK REIT (or a company UK REIT) on the date on which it ceased to be a member of Group 1.