Commentary

B5.627 Dealers in land—rules applying to particular transactions

Business tax
Business tax | Commentary

B5.627 Dealers in land—rules applying to particular transactions

Business tax | Commentary

Dealers in land

B5.627 Dealers in land—rules applying to particular transactions

Rules apply to dealers in land etc that are specific to the purchase or sale of woodlands, mineral royalties and lease premiums. These are examined further below.

Purchase or sale of woodland

A person who carries on the trade of dealing in land and who buys and sells land on which trees are growing is subject to special rules that apply for the purposes of calculating the profits of that trade1. Under the rules, if the person carrying on the trade buys woodland in the UK in the course of the trade, the part of the cost of the woodlands that is attributable to trees or saleable underwood growing on the land is disregraded2. Similarly, if the woodland is subsequently sold in the course of the trade and any of the trees or underwood are still growing on the land at the time of the sale, that part of the

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