Corporation Tax Act 2010 section 573A

Notice under section 572: condition D in section 528 not met

Section 573A allows HMRC to issue a notice removing a company or group from the UK REIT regime where condition D (the requirement that the company's shares must be admitted to trading on a recognised stock exchange) has not been met, and sets out the effective date of that removal.

• HMRC may issue a termination notice if condition D is not met during the initial three-year period and the breach has lasted for more than three years in total across one or more periods of REIT status
• The breach tracking rules follow a business if it is transferred from one company to another, so companies cannot avoid the consequences by moving operations between entities
• Breaches caused solely by corporate restructuring — such as a group REIT's principal company joining another group REIT, or a single-company REIT joining a group REIT — are excluded from triggering a termination notice
• Where HMRC issues such a notice, the company or group is treated as having left the REIT regime from the first day of accounting period 1, or a later date specified by HMRC