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HMRC internal manual

Business Income Manual

Land transactions: Conditions: Motive test

S756 Income Tax Act 2007, S819 Corporation Tax Act 2010

The motive tests included in the conditions discussed in BIM60310 raise questions of fact. You should therefore look for evidence to support your contention that one of the motive conditions is satisfied.

You should examine carefully any statement of intention provided by the taxpayer and consider if it is consistent with the pattern of the taxpayer’s past or present transactions and if there is any circumstantial evidence to support this.

You need to obtain and consider all of the evidence (which should include contemporaneous documents, agreements, notes of meetings and any other records or documentation) to determine the motive. In many cases a face to face meeting with the parties directly involved may be the speediest way to examine the motive.