Corporation Tax Act 2010 section 527

Being a UK REIT in relation to an accounting period

Section 527 sets out the requirements that a group of companies or a single company must satisfy in each accounting period in order to maintain its status as a UK Real Estate Investment Trust (REIT).

• A group UK REIT must meet ongoing conditions relating to the principal company's structure, share ownership, property rental business activity, profit distribution, balance of business, and financial reporting throughout each accounting period.
• A single company UK REIT must meet the same conditions (except the financial reporting requirement applicable only to groups), including company conditions, share conditions, property rental business activity, profit distribution, and balance of business.
• There is a grace period for the first three years after REIT status begins: during this initial period, certain conditions about the company's share diversification (condition D) do not need to be met, providing new REITs with time to achieve full compliance.
• These requirements are subject to relaxations available on initial entry, on demergers, and under the provisions dealing with breaches of conditions, meaning strict non-compliance does not automatically result in loss of REIT status in every case.