Section 561 — Corporation Tax Act 2010: Notice of breach of relevant Chapter 2 condition

Notice of breach of relevant Chapter 2 condition 561 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), the condition in section 528A (further condition relating to shares), the property rental business condition , the condition in section 530 (distribution of profits), and conditions A and B in section 531 (balance of business). 3A For the purposes of this section, and sections 563 and 575, the “property rental business condition” is met if either conditions A and B or condition C in section 529 (property rental business) are met.

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.

5 The following subsections apply in relation to condition D in section 528.

6 In accordance with section 527(6) and (7), a notification does not have to be given under subsection (1) or (2) if condition D ceases to be met during the first 3-year period.

7 If condition D is not met at the start of the first day after the end of the first 3-year period, for the purposes of subsections (1) to (4) condition D is treated as having ceased to be met at the start of that day.

8 In subsections (6) and (7) “ the first 3-year period ” has the meaning given by section 527(8).