766Exemption: disposals of shares in companies holding land as trading stockU.K.
(1)No liability to income tax arises under this Chapter in respect of a gain on property deriving value from land if—
(a)the gain is obtained by the holder of shares,
(b)the gain arises as a result of the holder of shares falling within section 757(1)(a) or (b) (persons acquiring, holding or developing land and connected persons), and
(c)the circumstances are such as are mentioned in subsections (2) and (3).
(2)The gain arises on a disposal of shares in—
(a)a company which holds that land as trading stock, or
(b)a company which directly or indirectly owns at least 90% of the ordinary share capital of another company which itself holds that land as trading stock.
(3)All the land so held is disposed of—
(a)in the normal course of its trade by the company which holds it, and
(b)so as to procure that all opportunity of profit in respect of the land arises to that company.
(4)This section does not affect any liability as a result of any person falling within section 757(1)(c) (parties to arrangements and schemes, etc).