Income Tax Act 2007 (c. 3)

Part 13 U.K. Tax avoidance

Chapter 3 U.K. Transactions in land

Charge on gains from transactions in land U.K.

756 Income treated as arising when gains obtained from some land disposals U.K.

(1) This section applies if—

(a) any of the conditions specified in subsection (3) is met as respects land,

(b) a gain of a capital nature is obtained from the disposal of all or part of the land,

(c) all or part of the land is situated in the United Kingdom, and

(d) a person within section 757(1)(a), (b) or (c) obtains the gain.

(2) The gain is treated for income tax purposes as income arising when the gain is realised.

(3) The conditions are that—

(a) the land is acquired with the sole or main object of realising a gain from disposing of all or part of the land,

(b) any property deriving its value from the land is acquired with the sole or main object of realising a gain from disposing of all or part of the land,

(c) the land is held as trading stock, and

(d) the land is developed with the sole or main object of realising a gain from disposing of all or part of the land when developed.

(4) It does not matter for the purposes of this section whether the person within section 757(1)(a), (b) or (c) obtains the gain for that person or another person.

(5) For the purposes of this section, if, for example by a premature sale, a person (“A”) directly or indirectly transmits the opportunity of realising a gain to another person (“B”), A obtains B's gain for B.

(6) For the meaning of “another person”, see section 763.