3(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”.