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HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
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Transactions in land: Transactions, arrangements, sales and realisations

S761 Income Tax Act 2007, S823 Corporation Tax Act 2010

In order to determine whether there is a charge to tax under the transactions in land rules, you must consider any method (however indirect this might be) be which:

  • any property or right over property is transferred or transmitted, or
  • the value of any property or right over property is enhanced or diminished.

This means that any occasion in which property is transferred or transmitted or the value of property is enhanced may be an occasion on which the transaction in land rules apply.

The legislation gives a list of situations where the transactions in land rules may be in point:

  • sales, contracts and other transactions made otherwise than for full consideration or for more than full consideration,
  • any method by which any property or right, or the control of any property or right, is transferred or transmitted by assigning:

    • share capital or other rights in a company,
    • rights in a partnership, or
    • an interest in settled property,
  • the creation of an option affecting the disposition of any property or right and the giving of consideration for granting it,
  • the creation of a requirement for consent affecting such a disposition and the giving of consideration for granting it,
  • the creation of an embargo affecting such a disposition and the giving of consideration for releasing it, and
  • the disposal of any property or right on the winding up, dissolution or termination of a company, partnership or trust.

This is not meant to be an exhaustive list.

For common situations to which the transactions in land rules apply, see BIM60340.