Income Tax Act 2007 (c. 3)

Part 13 U.K. Tax avoidance

Chapter 3 U.K. Transactions in land

Exemptions U.K.

765 Exemption: gain attributable to period before intention to develop formed U.K.

(1) This section applies if—

(a) income is treated as arising because the condition mentioned in section 756(3)(d) is met (land developed with sole or main object of realising a gain from its disposal when developed), and

(b) part of the income is fairly attributable to a period before the intention to develop was formed.

(2) No liability to income tax arises under this Chapter in respect of that part of the income.

(3) In applying this section account must be taken of the treatment under Part 2 of ITTOIA 2005 (trading profits) of a person who appropriates land as trading stock.