Corporation Tax Act 2010 section 528B

Relaxation of section 528A condition for accounting periods 1 to 3

Section 528B relaxes the share listing and trading requirements that normally apply to UK REITs, giving newly established REITs a grace period covering their first three accounting periods to meet those conditions.

• A new UK REIT (whether a group or a single company) has its first three accounting periods to satisfy the share admission requirements that would otherwise apply on an ongoing basis under section 528A
• The requirement is treated as met if, by the end of the third accounting period, the ordinary shares are "listed" as defined in section 1137(2)(b), or if the shares have been traded on a recognised stock exchange at any point during those three periods
• The "relevant period" is the combined span of accounting periods 1, 2 and 3, meaning the REIT is assessed across the whole window rather than period by period
• A REIT can only benefit from this relaxation once, as section 573B prevents repeated use of this concession