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If a company or a principal company of a group REIT does not meet Company conditions A, B, E or F of CTA2010/S528 in an accounting period, it automatically leaves the regime (CTA2010/S578). Unlike all of the other conditions of the regime, there are no provisions that can be relied on to remain in the regime if these Company conditions are breached.  

Where a company/principal company has breached one of these conditions, the regime will, in general, cease to apply from the end of the accounting period before the breach occurs. »Ê¹ÚÌåÓýapp exception is where the company / group has been a UK-REIT for less than ten years â€� in which case HMRC can direct that a different date of cessation applies (see IFM26045).ÌýÌý

»Ê¹ÚÌåÓýapp events that result in automatic termination are:

• ceasing to be solely UK resident for tax purposes 
• becoming an open-ended investment company
• issuing a new class of ordinary shares or any other type of share apart from non-voting restricted preference shares (as defined in CTA2010/S160), and
• borrowing money on terms that effectively entitle the lender to a share of the profits or otherwise breach the requirements of CTA2010/S528(8) (see IFM22015).Ìý

Where any of these events occur, the company/principal company is required to notify HMRC that it no longer meets the condition as soon as reasonably practicable.