Leaving the regime: termination by company/principal company
If a company/group wants to leave the UK-REIT regime, it does so by the company/principal company giving notice to HMRC (section 571 CTA 2010). In practice, this notice should be sent to the tax office that deals with the company. (See GREIT06005 for the disposal of a company by a group REIT where no notice is required to be served to HMRC).There is no prescribed form for the notice: the only requirements are that it should be given in writing (or electronic equivalent) and it must specify the date on which the company wishes the regime to cease to apply to it.
The date specified in the notice for cessation of the regime must be after the date of the notice. Note that under the cessation provisions in section 579 CTA 2010, the accounting periods of the property rental and residual businesses will come to an end on the date the regime ceases to apply to the company / group (see GREIT06010).
Exit within ten years of joining
If the company/principal company specifies a date to leave the regime that is less than ten years after it joined, the tax treatment of disposals of property rental business assets within the two years following cessation may be affected - see GREIT06035. [Note these special rules will be applicable for all exits prior to 2017 as the REIT regime commenced on 1 January 2007]
The same rules also apply where a company ceases to be a member of Group REIT within 10 years of becoming a member of a Group REIT (section 581(7) CTA 2010).