Part 13Tax avoidance
Chapter 3Transactions in land
Exemptions
766Exemption: disposals of shares in companies holding land as trading stock
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).