Corporation Tax Act 2010 section 588

Effect of notice under section 586

Section 588 explains how the REIT rules are modified to apply to joint venture companies once a notice has been given under section 586, including how the joint venture company is treated as part of a REIT group or a newly deemed REIT group.

• Where a group REIT gives notice under section 586(1), the joint venture company's property rental business is treated as if the joint venture company were a member of that REIT group.
• Where a single-company REIT gives notice under section 586(2), the venturing company and the joint venture company are treated as forming a new group REIT (a "deemed UK REIT"), with the venturing company acting as the principal company.
• References throughout Part 12 to group REIT members, entry dates, and UK or non-UK member companies are adapted so they apply appropriately to the joint venture company and, where relevant, the venturing company.
• The joint venture company's effective date of entry into the REIT regime is the date specified in the notice under section 586(6)(c), rather than any other entry date that might otherwise apply.