Schedules

Schedule 4Investment vehicles

Part 2Real estate investment trusts

3REITs involving single commercial property

1

In section 527 (being a UK REIT in relation to an accounting period)—

a

in subsection (2)(b), after “met” insert “or in relation to which condition C is met”;

b

in subsection (3)(b) after “met” insert “or in relation to which condition C is met”.

2

In section 529 (conditions as to property rental business)—

a

after subsection (2) insert—

2A

Condition C is that the property rental business involves at least 1 property—

a

the value of which is equal to, or exceeds, £20 million at the relevant time, and

b

which is designed, fitted or equipped for the purpose of being rented, and is rented or available for rent, as a commercial unit.

2B

For the purposes of subsection (2A) the “relevant time” means—

a

where the group or company is a UK REIT and its property rental business previously met conditions A and B, the first day on which at least one of those conditions ceased to be met, or

b

otherwise, entry.

b

in subsection (3), for “and B” substitute “to C”;

c

in subsection (4), in the words before paragraph (a), for “and B” substitute “to C”.

3

In section 561—

a

in subsection (3) for “conditions A and B in section 529 (property rental business)” substitute “the property rental business condition”;

b

after that subsection insert—

3A

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.

4

In section 563 (breach of conditions as to property rental business)—

a

in the heading, for “conditions as to property rental business” substitute “property rental business condition”;

b

in subsection (1), for “condition A or B in section 529 (property rental business)” substitute “the property rental business condition (see section 561(3A))”.

5

In section 575 (breach of conditions as to property rental business)—

a

in subsection (1), for “condition A or B in section 529 (property rental business)” substitute “the property rental business condition (see section 561(3A))”;

b

in subsection (2)—

i

omit the “or” after paragraph (a);

ii

at the end of paragraph (b) insert

, or

c

more than twice in relation to Condition C in that section.

c

in subsection (4), in Rule 2, for “condition A or B in section 529” substitute “the property rental business condition”.