Part 4Property income

Chapter 5Profits of property businesses: other rules about receipts and deductions

Apportionments on sale of land

259Nature of item apportioned on sale of estate or interest in land

1

This section applies if—

a

a company sells an estate or interest in land,

b

on the sale a part of a receipt or outgoing in respect of the estate or interest is apportioned to the seller, and

c

the receipt or outgoing is receivable or to be paid by the buyer after the apportionment is made.

2

In calculating the profits of the seller's property business, the part apportioned is treated as being of the same nature as the receipt or outgoing.