BECOMING A UK-REIT 21
6. ONGOING UK TAX COMPLIANCE AND FILING OBLIGATIONS
Once within the UK-REIT regime, there are four key HMRC filing obligations in respect of each period:
They comprise three main statements: X An IFRS summary of the income, expenses, profits and assets of the property rental business X An IFRS summary of the income, expenses, profits and assets of the residual business X A summary of the profits of the UK property rental business calculated under corporation tax rules. It is necessary to provide a reconciliation between the two IFRS statements and the audited accounts of the UK-REIT. The first two statements are similar to consolidated accounts as intra-group transactions are ignored. They also include details of the worldwide business of the UK‑REIT. These financial statements must be in a HMRC approved format and filed with the tax returns for the UK-REIT. For accounting periods commencing on or after 1 April 2022, if the group accounts show that the property rental business profits and assets comprise at least 80% of group totals, a UK‑REIT will not have to prepare the two IFRS summaries.
1. QUARTERLY DISTRIBUTION RETURNS (FORMCT61) The parent company of the UK-REIT is required to file a return with HMRC within 14 days of the end of any quarter in which a property income distribution is paid to shareholders. For example, if a PID was paid on 20 July 2021, the return must have been filed by 14 October 2021. The tax withheld must be paid over to HMRC by the date the return is due to be filed. 2. CORPORATIONTAX RETURNS Corporation tax returns must be filed for the principal company and any company in the UK-REIT group that has residual business. The tax returns must be filed within 12 months of the end of each period of account.
3. ANNUAL TAX
FINANCIAL STATEMENTS The main annual filing requirement for UK‑REITs is the submission of tax-specific REIT Financial Statements. These statements are intended to set out in one place the information required by HMRC to determine compliance with the UK-REIT requirements including the balance of business tests, the profit: financing cost ratio and the distribution condition.
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