Corporation Tax Act 2010 section 356OB

Disposals of land in United Kingdom

Section 356OB sets out the circumstances in which a profit or gain from disposing of land in the United Kingdom will be treated as a trading profit for corporation tax purposes, including the persons who may be caught and the conditions that must be satisfied.

• A profit or gain from disposing of UK land may be taxed as a trading profit where one of four conditions (A to D) is met, covering situations where land was acquired, held as trading stock, or developed with the main purpose of realising a profit on disposal.
• The rules apply not only to the person who acquires, holds or develops the land, but also to associated persons and anyone who is party to an arrangement that enables a profit to be realised indirectly or through a series of transactions.
• A person is treated as associated if they are connected (for example, through partnerships, trusts or corporate control) or related to the person dealing with the land, at any time from when the project begins until six months after the disposal.
• The "project" encompasses all activities carried out for the purposes of dealing in or developing the land, as well as any other activities falling within the four conditions.