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HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
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Transactions in land: Definitions: Property deriving its value from land

S762, S772 Income Tax Act 2007, S824, S833 Corporation Tax Act 2010

Property deriving its value from land is widely defined. It specifically includes:

  • any shareholding in a company deriving its value directly or indirectly from land,
  • any partnership interest deriving its value directly or indirectly from land,
  • any interest in settled property deriving its value directly or indirectly from land, and
  • any option, consent or embargo affecting the disposition of land.

This is not intended to be an exhaustive list.

In deciding the extent to which the value of the property relates to the land, the legislation suggests that the attribution to the shareholders, partners or beneficiaries in such a manner as is ‘appropriate’ in the circumstances. Any reasonable attribution should therefore be accepted.