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HMRC internal manual

Business Income Manual

Transactions in land: Person obtaining the gain

S756-S758 Income Tax Act 2007, S819-S821 Corporation Tax Act 2010

For these rules to apply, the person, or persons, who obtain the gain must be either:

  • the person acquiring, holding or developing the land,
  • a person connected with such a person, or
  • any person who is party to an arrangement or scheme which enables the gain to be realised indirectly or via a series of transactions .

See BIM60475 for the definition of connected person in this context.

If the transactions in land anti-avoidance rules apply, the amount of the profit on the disposal of the land is taxed as if it were income, rather than as a capital gain. See BIM60333 and BIM60335.

Generally, the person who realises the gain is the person who is liable for the tax due.

However, the anti-avoidance rules also apply where the person falling within any of the above categories obtains the gain for another person.

In those cases it is the person who provides value, or the opportunity for another person to realise a gain, who will be liable for the tax due under these rules (see BIM60328).