Commentary

C2.1121 Development land held at 6 April 1965

Capital gains tax
Capital gains tax | Commentary

C2.1121 Development land held at 6 April 1965

Capital gains tax | Commentary

C2.1121 Development land held at 6 April 1965

Where an interest in land in the UK is disposed of, a special provision1 applies if:

  1.  

    (i)     there has been allowable expenditure2 before 6 April 1965, and

  2.  

    (ii)     the consideration for the asset acquired on the disposal exceeds the current use value of the asset at the time of the disposal, or if any material development (see below) of the land has been carried out after 17 December 1973 since the person making the disposal acquired the asset3

Any change in the state, nature or use of the land (including any buildings thereon) constitutes a 'material development' in the context of (ii) above4. However, certain changes are disregarded5, including the following:

  1.  

    •     any change resulting in an increase in the volume of the original building by no more than 10%

  2.  

    •     any change made for

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