When the principal company of a group gives notice for its group
to join the regime, that covers all the companies that are 75%/
effective 51% subsidiaries at the date the notice is effective. If
a company subsequently becomes a 75%/ effective 51% subsidiary, the
regime applies to the new group member in the same way as it does
to companies that were group members at the date the group joined
the regime.
When a new company joins a Group REIT, the consequences for
the new company are the same as for a company that was a member of
the group on the day the group joined the regime. There is a deemed
sale and reacquisition of the assets of the property rental
business of the new group member on the day it joins the group and
an Entry Charge is payable by reference to the market value of the
assets involved in its property rental business (subject to any
portion disregarded on account of minority share-holdings –
see
GREIT11200).
