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HMRC internal manual

Guidance on Real Estate Investment Trusts

Groups: entering the regime: companies joining a group that is already a Group REIT


When the principal company of a group gives notice for its group to join the regime,that covers all the companies that are 75%/ effective 51% subsidiaries at the date thenotice is effective. If a company subsequently becomes a 75%/ effective 51% subsidiary,the regime applies to the new group member in the same way as it does to companies thatwere group members at the date the group joined the regime.

When a new company joins a Group REIT, the consequences for the new company are the sameas for a company that was a member of the group on the day the group joined the regime.There is a deemed sale and reacquisition of the assets of the property rental business ofthe new group member on the day it joins the group and an Entry Charge is payable byreference to the market value of the assets involved in its property rental business(subject to any portion disregarded on account of minority share-holdings – see GREIT11200).