Corporation Tax Act 2010 section 590

Duration of notice under section 586 or 587

Section 590 sets out the circumstances in which a joint venture notice given under section 586 or 587 automatically ceases to have effect, and the consequences of that cessation.

• A joint venture notice ceases to have effect if the venturing group or venturing company no longer meets the relevant 40% ownership and profit tests in relation to the joint venture company or joint venture group.
• A joint venture notice also ceases to have effect if the venturing group or venturing company loses its UK REIT status.
• Once a notice ceases to have effect, the UK REIT regime no longer applies to the joint venture company or joint venture group in the manner previously specified by the notice.
• Despite a notice ceasing to have effect, the early exit charge provisions under section 581 continue to apply to the joint venture company or members of the joint venture group.