Corporation Tax Act 2010 section 562B

Breach of further condition relating to shares

Section 562B sets out the consequences when a UK REIT fails to meet the additional share condition required by section 528A, and specifies certain circumstances in which such a breach is disregarded.

• If the further share condition in section 528A is not met for an accounting period, the group or company is treated as having lost its UK REIT status at the end of the previous accounting period.
• The breach is disregarded if it arises because the principal company of a group UK REIT becomes a member of another group UK REIT.
• The breach is also disregarded if it arises because a company UK REIT joins a group UK REIT.
• This section is subject to the provisions of section 562C, which provides modified rules for breaches occurring in the first three accounting periods.