Annex 1: Minor changes in the law Change 42: UK REITs: conditions as to property rental business: exclusion of non-member’s interest: section 529
This change excludes from a group’s property rental business the percentage of that business held by a non-member of the group.
For the purposes of the tests in section 529 the property rental businesses of members of a group are treated as a single business. The tests are:
	whether the business involves at least three properties; and
	whether a single property represents more than 40% of the value of all the properties in the business.
The number of properties involved (the first test) is not affected by this Change.
A company in the group may have a minority shareholder. In accordance with section 533(3) that shareholder’s interests in the company are excluded from the financial statements required by that section. The effect of this Change on the second test is illustrated by the following examples.