(1) Where a company becomes a REIT, the assets of the company before it becomes a REIT shall be deemed, for the purposes of the Capital Gains Tax Acts, to have been -
(a) sold by the company immediately before it becomes a REIT, and
(b) reacquired by the company immediately on becoming a REIT,
and such deemed sale and reacquisition shall be treated as being for a consideration equal to the market value of the assets on the date specified by the company, in accordance with section 705E(3)(a), in a notice under that section.
(2) Where a group becomes a group REIT, the assets of each member of the group before it becomes a group REIT shall be deemed for the purposes of the Capital Gains Tax Acts, to have been -
(a) sold by that member of the group immediately before the group becomes a group REIT, and
(b) reacquired by that member of the group immediately on the group becoming a group REIT,
and such deemed sale and reacquisition shall be treated as being for a consideration equal to the m
…