Section 561 Notice of breach of relevant Chapter 2 condition

The principal company of a group UK REIT must notify an officer of Revenue and Customs as soon as reasonably practicable if a relevant Chapter 2 condition ceases to be met in relation to the principal company or (as the case may be) the group.

A company UK REIT must notify an officer of Revenue and Customs as soon as is reasonably practicable if a relevant Chapter 2 condition ceases to be met in relation to the company.

Each of the following is a “relevant Chapter 2 condition”—

• conditions C and D in section 528 (conditions for company),

• F1the condition in section 528A (further condition relating to shares),

• F2the property rental business condition,

• the condition in section 530 (distribution of profits), and

• conditions A and B in section 531 (balance of business).

For the purposes of this section, and sections 563 and 575, the “property rental business condition” is met if either conditions A and B or condition C in section 529 (property rental business) are met.

A notification under subsection (1) or (2) must include—

The following subsections apply in relation to condition D in section 528.

In accordance with section 527(6) and (7), a notification does not have to be given under subsection (1) or (2) if condition D ceases to be met during the first 3-year period.

If condition D is not met at the start of the first day after the end of the first 3-year period, for the purposes of subsections (1) to (4) condition D is treated as having ceased to be met at the start of that day.

In subsections (6) and (7) “the first 3-year period” has the meaning given by section 527(8).