Part 13Tax avoidance
Chapter 3Transactions in land
Charge on gains from transactions in land
760Method of calculating gain
1
Subsections (3) to (5) apply for calculating a gain for the purposes of this Chapter.
2
But, except so far as those subsections make provision, such method is to be used for those purposes as is just and reasonable in the circumstances.
3
The method must—
a
take into account the value of what is obtained for disposing of the land, and
b
allow only such expenses as are attributable to the land disposed of.
4
If a freehold is acquired and on disposal the reversion is retained, account may be taken of the way in which trading profits are calculated in such a case.
5
Account may be taken of the adjustments to be made in calculating trading profits under section 158 of ITTOIA 2005 (lease premiums etc: reduction of receipts).
6
In this section “trading profits” means the profits under Part 2 of ITTOIA 2005 (trading profits) of a person dealing in land.
7
In the application of this section in Scotland—
“freehold” means the interest of the owner, and
“reversion” means the interest of the landlord in property subject to a lease.
8
See also section 764 (valuations and apportionments).