Commentary

B5.212 Land dealer and also investor—individual

Business tax
Business tax | Commentary

B5.212 Land dealer and also investor—individual

Business tax | Commentary

B5.212 Land dealer and also investor—individual

For the statutory provisions relating to offshore property developers and their UK profits arising from a trade which involves either dealing in or developing UK land, see B5.255. The provisions in this article relate to case law and HMRC Guidance.

It is an important point, in many cases of this type, that a person may be concurrently a dealer in land and an investor in real estate1. But the burden of proof on a land dealer who also claims to hold pieces of land as investments is a heavy one2.

In Harvey v Caulcott3, the appellant, a builder, built a number of shops on a site of which he was the leaseholder. He sublet two shops to his wife as his nominee, and they were transferred from his business accounts to his private accounts. The shops were later sold. He had also bought a house for his foreman to live in, which was similarly sold. He was assessed under former Schedule D Case I (trading income) in respect of all these transactions. The General Commissioners dismissed his appeal, but their decision was reversed in the High

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