Real estate—anti-avoidance: disposals of land and taxing capital gains as income (pre 5 July 2016) [Archived]
Produced in partnership with Charles Goddard of Rosetta Tax
Real estate—anti-avoidance: disposals of land and taxing capital gains as income (pre 5 July 2016) [Archived]

The following Tax practice note produced in partnership with Charles Goddard of Rosetta Tax provides comprehensive and up to date legal information covering:

  • Real estate—anti-avoidance: disposals of land and taxing capital gains as income (pre 5 July 2016) [Archived]
  • Purpose of legislation
  • Key conditions of the charge to tax
  • General conditions
  • Conditions relating to land
  • Conditions relating to the person making the gain
  • Charge to income tax
  • Application of the rules and exemptions
  • Example 1: land is bought and leased under a short lease at a rack (ie market) rent. The land is subsequently sold at a profit.
  • Exemption: private residence
  • More...

Real estate—anti-avoidance: disposals of land and taxing capital gains as income (pre 5 July 2016) [Archived]

ARCHIVED: This Practice Note has been archived and is not maintained.

This Practice Note covers the anti-avoidance measure for transactions in land which was designed to charge gains of a capital nature arising from the disposal of land to income tax or corporation tax on income. These provisions were introduced in 1969 and were found in sections 815–833 of Corporation Tax Act 2010 (for corporation tax) and sections 752–778 of Income Tax Act 2007 (for income tax). The anti-avoidance measure examined in this Practice Note was replaced and extended by the offshore property developer rules which were introduced with effect from 5 July 2016. For more details of these rules, see Practice Note: Profits from trading in and developing UK land (transactions in UK land). The provisions of CTA 2010, ss 815–833 (for corporation tax) and ITA 2007, ss 752–778 (for income tax) no longer apply with effect from 5 July 2016.

HMRC can also use a range of other measures to counter income tax, corporation tax, stamp duty land tax (SDLT) and VAT avoidance in relation to land, not least the general anti-abuse rule (GAAR) (for further details, see our GAAR subtopic).

For further details of such measures in the context of income tax and corporation tax, see Practice Note: Real

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