Corporation Tax Act 2010 section 529

Conditions as to property rental business

Section 529 sets out the conditions that a UK REIT's property rental business must satisfy in terms of the number, value and nature of properties involved.

• The business must involve at least three properties (Condition A), and no single property may represent more than 40% of the total value of all properties in the business (Condition B).
• At least one property must be valued at £20 million or more and must be designed, fitted or equipped for rental as a commercial unit (Condition C), assessed from the later of entry into the REIT regime or acquisition of the property.
• For groups, the property rental businesses of all members are treated as a single business when testing these conditions, including worldwide properties held by non-UK resident companies.
• Properties must be valued using international accounting standards at fair value, ignoring any liabilities secured against or relating to the assets.