GREIT02005 - Conditions and Tests: Company Conditions: summary
Before giving notice to join the regime, the company itself
must meet three conditions, and once in the regime, the company
must meet three further conditions throughout every accounting
period that it is in the regime. They are set out in section 106 FA
2006.
The conditions for giving notice to join the regime are:
- that the company is UK resident,
- it must not be an open-ended investment company. and
- its shares must be listed on a recognised stock exchange.
The further conditions for remaining in the regime are:
- it must not be ‘close’,
- the only shares it can have in issue are a single class of
ordinary share capital and non-voting fixed rate preference shares,
and
- it must not be party to any loan where the results are dependent on the profits of the business.
For more detail on conditions 1-3 see GREIT02010 and for conditions 4-6 see GREIT02015.
Group REITs
Company Conditions 1 to 6 must be met by the principal company of a Group REIT (paragraph 5(1) Schedule 17 FA 2006).
