Part 2Trading income

Chapter 2Income taxed as trade profits

Trades and trade profits

12Profits of mines, quarries and other concerns

(1)

Profits or losses arising out of land in the case of a concern to which this section applies are calculated as if the concern were a trade.

(2)

Any profits arising out of the land are charged to income tax as if the concern were a trade carried on in the United Kingdom.

But this does not impose a charge to tax on a non-UK resident in the case of a concern outside the United Kingdom.

(3)

Any losses arising out of the land are treated for the purposes of Chapter 1 of Part 10 of ICTA (loss relief) as losses of a trade carried on in the United Kingdom.

(4)

The concerns to which this section applies are—

(a)

mines and quarries (including gravel pits, sand pits and brickfields),

(b)

ironworks, gasworks, salt springs or works, alum mines or works, waterworks and streams of water,

(c)

canals, inland navigation, docks and drains or levels,

(d)

rights of fishing,

(e)

rights of markets and fairs, tolls, bridges and ferries,

(f)

railways and other kinds of way, and

(g)

a concern of the same kind as one specified in paragraph (b), (c), (d) or (e).

(5)

This section does not apply to a concern if section 10 (commercial occupation of land other than woodlands) applies to the occupation of the land out of which the profits or losses arise.