The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The transactions in UK land rules are anti-avoidance rules that have been in the statute book in one form or another since before the introduction of capital gains tax in 1965.
Generally, if an individual sells land (which includes buildings and any estate or interest in land or buildings), on first principles it is taxable as either:
trading income (if it is a trade or a venture in the nature of trade), or
a capital gain
For a discussion on when a sale of land or buildings could be considered to be trading income, see the Application of the badges of trade guidance note. Those rules on treating the sale as trading income have priority over the anti-avoidance provision discussed in this guidance note.
What if the transaction is not a trade or venture in the nature of trade, but the property was purchased or developed with the intention of making a profit similar to that of a property dealer? This is where the transactions in UK land anti-avoidance provision bites, so as to treat the gain as income.
This guidance note discusses the transactions in UK land regime as it applies to individuals disposing of UK land on or after 5 July 2016. For information on the previous regime, which applied to transactions taking place up to and including 4 July 2016, see the Transactions in land ― pre-2016 rules guidance note.
The transactions in UK land rules also apply to companies. See the Transactions in UK land guidance note.
The transactions in UK land rules apply to ‘persons’, which is widely defined. It includes individuals, personal representatives, trustees and companies. The rules apply to UK residents and UK non-residents. In fact, the driver for the rewriting of the old transactions in land provisions in 2016 was to ensure that non-residents would be caught by the anti-avoidance rules as well as residents.
The rules relate to two types of disposals:
disposals of UK land (whether direct or via
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
There are several sets of provisions in the Taxes Acts which relate to ‘close’ companies, most of which are anti-avoidance measures aiming to catch transactions between those companies affected and their owners, where there may otherwise be a tax advantage. Broadly speaking, most owner-managed or
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.