Corporation Tax Act 2010 section 356OC

Disposals of land: profits treated as trading profits

Section 356OC establishes how profits or gains from disposals of UK land are treated as trading profits for corporation tax purposes, including gains that are capital in nature.

• Profits or gains from UK land disposals are treated as trading profits of the chargeable company for corporation tax purposes.
• For non-UK resident companies, the relevant trade is the company's trade of dealing in or developing UK land.
• This treatment does not apply where the profit or gain is already brought into account as income for corporation tax or income tax purposes.
• The profits are treated as arising in the accounting period in which the profit or gain is actually realised, and gains that are capital in nature are caught in the same way as revenue gains.

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