Corporation Tax Act 2010 section 587

Notice for Part to apply: joint venture group

Section 587 allows a UK REIT (whether a group REIT or a single company REIT) to give notice bringing the property rental business of a joint venture group within the REIT regime, provided the REIT holds at least a 40% interest in the joint venture group's profits and assets.

• A group UK REIT or a company UK REIT may give notice for the REIT rules to apply to property rental business carried on by members of a joint venture group, provided the 40% ownership tests are satisfied
• The 40% tests require that the REIT (or, for a group REIT, its members collectively) is beneficially entitled to at least 40% of both the distributable profits and the winding-up assets of the principal company of the joint venture group
• The notice must identify the principal company of the joint venture group, be given with that company's consent, specify a start date for the REIT rules to apply, and be submitted in writing to an officer of Revenue and Customs before that start date
• The notice may be given at the same time as the initial notice electing into the UK REIT regime (under section 523 or 524) or at any later time while the group or company remains a UK REIT