Profits from a trade of dealing in or developing UK land: Period in which the gain is taxed
The profit or gain is chargeable in the:
- tax year in which the gain arises (where the person liable for the tax is an individual, a trustee or a personal representative), or
- accounting period in which the gain arises (where the person liable for the tax is a company). Guidance on accounting periods can be found at CTM01410
Company X has an accounting period ending on 31 December 2017. It disposes of a property on 12 May 2017. The profit will be taxable in the accounting period ending 31 December 2017.
Non-resident Company X was not within the charge to UK taxation prior to the new legislation. At the date the new legislation came into force they were carrying on a trade of dealing in or developing UK land. As the company has first come into charge to corporation tax on the date of the introduction of the new legislation (5th July 2016) a new accounting period will begin on that date.
Non-resident Company Y had a permanent establishment in the UK prior to the introduction of the new legislation. As the company has been chargeable to CT throughout this will not cause the cessation of a tax accounting period and the commencement of a new one.