GREIT06035 - Leaving the regime: early exit

If a company has been a UK-REIT for less than ten years, the timing/ consequences of leaving may be different. If the company gives notice under section 132 FA 2006 to leave the regime, then the tax treatment of ring fence assets sold within two years of leaving may be affected – see GREIT06040.

If the termination was by HMRC giving notice under section 129 FA 2006, or automatic under section 130 FA 2006 as a result of breaching Company Conditions 1, 2, 5 or 6, then the timing of leaving the regime and the tax consequences can be altered by direction of HMRC – see GREIT06045.

Group REITs

For Group REITs, the consequences of leaving early apply when the group as a whole leaves the regime within ten years of joining or a company is a member of a Group REIT for less than ten years – see GREIT11320 for details.