Corporation Tax Act 2010 section 578

Automatic termination for breach of certain conditions in section 528

Section 578 deals with the automatic loss of UK REIT status when a company breaches certain fundamental conditions required to operate as a UK REIT.

• If conditions A, B, E or F in section 528 (the company conditions) are not met during an accounting period, UK REIT status is automatically terminated.
• Termination takes effect from the end of the accounting period immediately before the one in which the breach occurred, meaning the company or group is treated as having left the regime at that earlier point.
• The company that originally notified HMRC of its entry into the UK REIT regime must inform an officer of Revenue and Customs of the breach as soon as reasonably practicable.
• This automatic termination applies equally whether the UK REIT is a single company or part of a group structure.