IFM09410 - Becoming a RIF: Entry Notice – Regulation 3 and 4
A co-ownership scheme can become a RIF when the scheme operator gives a valid entry notice to HMRC.
Regulation 4 sets out the information that must be included in a notice. This must include details of the scheme, the date from which the scheme is a RIF (which must be on or after 19 March 2025) and a declaration that the qualifying conditions have been/continue to be met. The scheme operator must also include a declaration that the scheme reasonably expects it will be a RIF until it is wound up or converted to an authorised co-ownership scheme.
The notice must also specify which of the restriction conditions are met by the scheme but only one needs to be met in order to satisfy the restriction requirement. However, if the operator knows that more than one restriction condition is met at the relevant time, the entry notice should identify each restriction condition that is met. An operator is not expected to state that an additional restriction condition is met where it does not know, and is not required to know, that the additional condition is met.
HMRC may publish a notice under Regulation 39 specifying the form and manner in which notices, applications and information under Part 2 of the Regulations must be given or made to HMRC. HMRC requires the relevant RIF notifications and accounting period information to be submitted electronically. The notice specifying that requirement, and details of how to comply with it, are set out on the relevant GOV.UK page.
An entry notice can be made at any time on or before the date from which the scheme is to become a RIF or within 3 months of the scheme becoming a RIF, as long as Regulation 28 does not apply to the scheme (that is, the scheme is not an unauthorised contractual scheme with chargeable land interests).
Regulation 3 provides that a co-ownership scheme meets, or is treated as meeting, the qualifying conditions on the date specified in the entry notice, the scheme is a RIF from that date, subject to the necessary declarations being made under Regulation 9 or 13 (IFM09420).
An entry notice remains valid until an operator submits an exit notice, HMRC issues a cessation notice, or a scheme breaches the qualifying conditions and ceases to be a RIF.