Section 588 | Effect of notice under section 586

(1)If a notice is given under section 586(1), this Part applies in relation to the property rental business carried on by the joint venture company as if the company were a member of the venturing group.

(2)If a notice is given under section 586(2), this Part applies in relation to the property rental business carried on by the joint venture company as if the venturing company and the joint venture company were the members of a new group UK REIT (a “deemed UK REIT”).

(3)For the purposes of subsections (1) and (2) references in this Part to a company which is a member of a group UK REIT include references to—

(a)the joint venture company, and

(b)in a case within subsection (2), the venturing company.

(4)For the purposes of subsection (3)—

(a)references in this Part to a UK company which is a member of a group UK REIT include references to a joint venture company which—

(i)is UK resident, and

(ii)is not resident in another place in accordance with the law of that place relating to taxation, and

(b)references in this Part to a non-UK company which is a member of a group UK REIT include references to a joint venture company which is not within paragraph (a).

(5)For the purposes of subsections (1) and (2) any reference in this Part to—

(a)entry, or

(b)a company becoming a member of a group UK REIT,

is to be read in relation to the joint venture company as a reference to the date specified under section 586(6)(c).

(6)For the purposes of subsection (2)—

(a)references in this Part to a UK REIT (or group UK REIT) include references to the deemed UK REIT, and

(b)references in this Part to the principal company of a group are to be read as references to the venturing company.

(7)Subsections (3) to (6) apply (in particular) for the purpose of interpreting section 549A(6)(a)(i) and (8)(a)(i).^F1