GREIT11305 - Groups: leaving the regime: companies leaving a Group REIT
When a company leaves a Group REIT, the consequences for the ex-member are the same as for a company that was a member of the group on the day the group leaves the regime. This is explained in more detail at GREIT11300. The deemed sale and reacquisition, cessation of business and accounting periods etc take place on the day the company ceases to be a 75%/ effective 51% subsidiary.
There is no requirement for the company or the principal company of the group to give a notice under S128 FA 2006. Paragraph 26 of Schedule 17 FA 2006 results in the date of leaving the regime being the date on which the company ceases to be a member of the group.
In addition paragraph 28 of Schedule 17 FA 2006 applies the early exit provisions of sections 132 (2) and (3) if either the group or the company have been a REIT for less than ten years