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HMRC internal manual

Business Income Manual

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HM Revenue & Customs
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Transactions in land: Conditions

S756, S757 Income Tax Act 2007, S819, S820 Corporation Tax Act 2010

In order for the transactions in land provisions to apply a number of conditions have to be satisfied.

Firstly, either:

  • the land (see BIM60450) is acquired with the sole or main aim of realising a gain from disposing all or part of the land,
  • any property deriving its value from the land (see BIM60455) is acquired with the sole or main aim of realising a gain from disposing of all or part of the land,
  • the land is held as trading stock (see BIM33000), or
  • the land is developed (see BIM60460) with the sole or main object of realising a gain from disposing of all or part of the land when developed.

For guidance on investigating the motive of the taxpayer, see BIM60320.

Secondly, assuming that any one of the above is the case, for the rules to apply:

  • a gain of a capital nature must be obtained on the disposal of all or part of the land (see BIM60470),
  • all or part of the land must be situated in the UK, and
  • the person obtaining the gain either on their own or another person’s behalf must fall into one of the categories listed in BIM60325.

For details of what constitutes a ‘disposal’ for the purposes of these rules, see BIM60465.

For a table outlining the territorial scope of the provisions, see BIM60315.