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HMRC internal manual

Capital Gains Manual

Land: development value: `material development'

However, TCGA92/SCH2/PARA13 (1) provides that certain changes are to be disregarded in determining whether `material development’ has occurred. The main changes to be ignored are as follows.

  • Where the changes result in an increase in the original volume of the building in question by not more than 10%.
  • Any change made for agricultural or forestry purposes.
  • Where the land or building is used for trade purposes, any change made for the purpose of that trade.
  • Where the building is used as a dwelling house, any change for the purpose of such usage.