Section 581 — Corporation Tax Act 2010: Early exit by notice

Early exit by notice 581 1 Subsection (6) applies if conditions A, B and C are met.

2 Condition A is that a group or company ceases to be a UK REIT as a result of a notice under section 571.

3 Condition B is that the group or company had been a UK REIT for a continuous period immediately before cessation of less than 10 years.

4 Condition C is that, during the post-cessation period, a relevant company, that is to say—

a in the case of a group, a member of the group, or b otherwise, the company, disposes of an asset that was involved in property rental business of the relevant company. 5 “ The post-cessation period ” means the period of two years beginning with the date of cessation.

6 The relevant company's liability to corporation tax is to be determined without regard to—

a any deemed disposal under section 536(2) that resulted in a gain, b any deemed disposal under section 555(2), or c any deemed disposal under section 579(4).

7 Subsection (6) also applies if—

a a company ceases to be a member of a group UK REIT, b either—

i the group has been a group UK REIT for a continuous period of less than 10 years, or ii the company has been a member of the group for a continuous period of less than 10 years, and c during the post-cessation period the company disposes of an asset that was involved in its property rental business.

8 This section has effect in relation to a non-UK member of a group as if references to property rental business were references to UK property rental business.