Real estate—anti-avoidance: sale and leasebacks, taxing lease receipts as income and general anti-avoidance rules
Produced in partnership with Charles Goddard of Rosetta Tax

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: sale and leasebacks, taxing lease receipts as income and general anti-avoidance rules
  • Real estate-specific measure—sale and leasebacks
  • Real estate-specific measure—taxing lease receipts as income
  • Real estate-specific measure—extension of CGT (and capital gains tax prior to 6 April 2019)
  • General measure—case-law and the
  • doctrine
  • General measure—DOTAS regime
  • General measure—taxing income or gains accruing to another person
  • Attribution of gains to UK shareholders in non-UK companies
  • Transfer of assets abroad
  • More...

Real estate—anti-avoidance: sale and leasebacks, taxing lease receipts as income and general anti-avoidance rules

This Practice Note, together with Profits from trading in and developing UK land (transactions in UK land), discusses the anti-avoidance measures designed to target avoidance of tax on income, profit or gains in relation to transactions over, or trades of dealing in, land.

The principal anti-avoidance measure seek to charge gains of a capital nature arising from the disposal of land to income tax or corporation tax as income. This is discussed in Practice Note: Profits from trading in and developing UK land (transactions in UK land). These rules replaced and extended the transactions in land rules from 5 July 2016 (for detail on the old rules, see Practice Note: Real estate—anti-avoidance: disposals of land and taxing capital gains as income (pre 5 July 2016) [Archived].

This Practice Note discusses:

  1. further measures specifically targeting avoidance of income tax or corporation tax in a real estate context, which:

    1. restrict relief for payments made following a sale and leaseback

    2. tax as income receipts that would otherwise be treated as capital in nature arising from the assignment or surrender of a lease, and

    3. the extension of CGT to gains arising to non-UK residents from direct and indirect disposals of UK land from 6 April 2019 (and prior to that the extension of capital gains

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