F1PART 9ATransactions in UK land
Amounts treated as profits of a trade
517BDisposals of land in the United Kingdom
1
Section 517C(1) applies (subject to subsection (3) of that section) if—
a
a person within subsection (2)(a), (b) or (c) realises a profit or gain from a disposal of any land in the United Kingdom, and
b
any of conditions A to D is met in relation to the land.
2
The persons referred to in subsection (1) are—
a
the person acquiring, holding or developing the land,
b
a person who is associated with the person in paragraph (a) at a relevant time, and
c
a person who is a party to, or concerned in, an arrangement within subsection (3).
3
An arrangement is within this subsection if—
a
it is effected with respect to all or part of the land, and
b
it enables a profit or gain to be realised—
i
by any indirect method, or
ii
by any series of transactions.
4
Condition A is that the main purpose, or one of the main purposes, of acquiring the land was to realise a profit or gain from disposing of the land.
5
Condition B is that the main purpose, or one of the main purposes, of acquiring any property deriving its value from the land was to realise a profit or gain from disposing of the land.
6
Condition C is that the land is held as trading stock.
7
Condition D is that (in a case where the land has been developed) the main purpose, or one of the main purposes, of developing the land was to realise a profit or gain from disposing of the land when developed.
8
In this section “relevant time” means any time in the period beginning when the activities of the project begin and ending 6 months after the disposal mentioned in subsection (1).
9
In this section “the project” means all activities carried out for any of the following purposes—
a
the purposes of dealing in or developing the land, and
b
any other purposes mentioned in Conditions A to D.
10
For the purposes of this section a person (“A”) is associated with another person (“B”) if—
a
A is connected with B by virtue of any of subsections (2) to (4) of section 993 (read in accordance with section 994), or
b
A is related to B (see section 517U).
Pt. 9A inserted (with effect in relation to disposals on or after 5.7.2016) by Finance Act 2016 (c. 24), s. 79(1), 82(1) (with s. 82(2)-(15)); which insertion also has effect so far as it would not otherwise have effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2)