Groups: entry to the regime: entry charge: companies joining a Group REIT
When a new company joins a group that is already a Group REIT, the new subsidiary paysan Entry Charge in the same way as a company that was a member of the group when the groupjoined the regime, as paragraph 10 Schedule 17 FA 2006 applies the group rules inparagraph 9(3) to companies that join an existing Group REIT. See GREIT11220 for details. The notional income arises to the residual part of the new group memberon the day after it joins the group, since that marks the start of a new accounting periodfor the new member.
Although the legislation in section 112(5) allows group members to elect to pay theirportion of the Entry Charge by instalments, this does not apply to companies that join anexisting Group REIT. This is because the election to pay by instalments could not haveaccompanied the section 109 notice given by the principal company when the grouporiginally joined the regime.