Section 559 | Demergers: company leaving group UK REIT

(1)This section applies in relation to a company if each of conditions A to D is met.

(2)Condition A is that the company (“the exiting company”) ceases to be a member of a group UK REIT (“Group 1”).

(3)Condition B is that at the time immediately after it ceases to be a member of Group 1—

(a)the exiting company is a member of another group (“Group 2”) and—

(i)the principal company of Group 2 meets conditions A and B in section 528,

(ii)Group 2 has property rental business in relation to which conditions A and B in section 529 are met,

(iii)the condition in section 530 is met in relation to the principal company of Group 2, and

(iv)Group 2 meets conditions A and B in section 531, or

(b)the exiting company—

(i)meets conditions A and B in section 528,

(ii)has property rental business in relation to which conditions A and B in section 529 are met, and

(iii)meets the condition in section 530 and conditions A and B in section 531.

(4)Condition C is that—

(a)in a case within subsection (3)(a), the principal company of Group 2 gives a notice under section 523 no later than the date on which the exiting company ceases to be a member of Group 1, and

(b)in a case within subsection (3)(b), the exiting company gives a notice under section 524 no later than the date on which it ceases to be a member of Group 1.

(5)Condition D is that the date specified in the notice under section 523 or 524 (as the case may be) is the same as that on which the exiting company ceases to be a member of Group 1.

(6)A company may give a notice under section 523 or 524 in accordance with subsection (4) even if it does not expect to meet conditions C, E and F in section 528 throughout accounting period 1.^F1

(7)If this section applies, the exiting company is to be treated as a member of a group UK REIT (or as a company UK REIT) during the period of 6 months beginning with the time when it ceases to be a member of Group 1.

(8)If this section applies, the following provisions do not have effect—^F2

sections 536 and 537 (effects of entry),

... and

sections 579 and 580 (effects of cessation).

(9)But if, at the end of the period of 6 months mentioned in subsection (7) conditions C, E and F in section 528 are not met in relation to the principal company of Group 2 or the exiting company (as the case may be)—^F3

(a)this section does not apply, and

(b)the exiting company is to be treated as having ceased to be a member of a group UK REIT (or a company UK REIT) on the date on which it ceased to be a member of Group 1.