Corporation Tax Act 2010 section 589

Effect of notice under section 587

Section 589 explains how the REIT rules are modified to accommodate joint venture group members once a notice has been given under section 587, ensuring that the property rental business of the joint venture is brought within the REIT framework.

• Where a group UK REIT gives notice, joint venture group members are treated as if they were members of the venturing group for the purposes of their property rental business.
• Where a single company UK REIT gives notice, a new "deemed UK REIT" group is created consisting of the venturing company and all joint venture group members.
• Joint venture group members that are UK resident (and not tax resident elsewhere) are treated as UK members of the group UK REIT; all other joint venture members are treated as non-UK members.
• References to "entry" or joining a group UK REIT are read, for joint venture group members, as the date specified in the notice under section 587(6)(c).