Commentary

D8.133 Breach of conditions

Corporate tax
Corporate tax | Commentary

D8.133 Breach of conditions

Corporate tax | Commentary

D8.133 Breach of conditions

In general when a company becomes aware that it has breached one of the necessary conditions for entry into and membership of the property authorised investment fund regime, it must, as soon as reasonably practical provide to HMRC1:

  1.  

    (a)     the date of the condition first being breached and the date on which (if any) the condition was satisfied again;

  2.  

    (b)     details of the condition that was breached and the nature of the breach;

  3.  

    (c)     what (if anything) the company has done to prevent the breach happening again.

This provision does not apply in the case of a breach of the rules in connection with a distribution to holders of excessive rights (D8.131).

As regards breaches of one or more of the necessary conditions HMRC are empowered to issue termination notices if certain conditions are not met, as follows2.

Breach of the genuine diversity of ownership

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