Commentary

B5.615 Builders and land developers—land treated as trading stock

Business tax
Business tax | Commentary

B5.615 Builders and land developers—land treated as trading stock

Business tax | Commentary

Builders and land developers

B5.615 Builders and land developers—land treated as trading stock

The most important characteristic of the business activity of building and selling of houses and the development of land is that land is trading stock, and it has to be treated for tax purposes in the same way as trading stock of any other kind. There is a distinction between properties held as investments and properties which should be regarded as stock in trade. In this connection reference may be made to B2.603, B5.211–B5.215.

The stock of land has to be brought into the first trading account

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