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HMRC internal manual

Trusts, Settlements and Estates Manual

Capital items that are income for tax purposes: gains on transactions in land


ITA/S752 is anti-avoidance legislation. It targets the avoidance of Case I tax in land transactions. It applies when, in essence, there is trading but the `profit’ emerges in a capital or non-taxable form.

For periods to 5 April 2006 this item is not liable at the special trust rate. For periods from 6 April 2006 it is liable at the special trust rate in both discretionary and non-discretionary trusts (ITA/Sections 481 and 482) but not in the case of unauthorised unit trusts, where it remains chargeable at basic rate.