Corporation Tax Act 2010 section 356OD

Disposals of property deriving its value from land in the United Kingdom

Section 356OD sets out the conditions under which profits from disposing of property that derives its value from UK land may be treated as trading profits for corporation tax purposes.

• The section targets disposals of property where at least 50% of the property's value comes from land in the United Kingdom at the time of the disposal
• The person making the disposal must be a party to, or concerned in, an arrangement relating to some or all of that land (known as "the project land")
• The arrangement must have as its main purpose, or one of its main purposes, dealing in or developing the project land and realising a profit from disposing of property deriving value from it
• Where all conditions are met, the profits or gains fall within section 356OE and may be treated as taxable trading profits