Commentary

B5.616 Builders and land developers—special features

Business tax
Business tax | Commentary

B5.616 Builders and land developers—special features

Business tax | Commentary

B5.616 Builders and land developers—special features

The question of the computation of profit from the sale of houses where a builder sells through a building society and by means of a builders' pool is discussed in B5.226–B5.228. The method of computation of the profits of house building and land development, where houses are sold in consideration of a lump sum and the payment of a ground rent, is discussed in B5.229–B5.232.

A lump sum which was received from the landowners when they withdrew a number of plots from a building agreement was held to be a trade receipt of the builder1.

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