Corporation Tax Act 2010 section 356ON

Relevance of transactions, arrangements, etc

Section 356ON ensures that HMRC can look through indirect methods of transferring property or rights, or enhancing or diminishing their value, when deciding whether profits from dealing in or developing UK land should be taxed as trading profits.

• When determining whether the UK land trading profits rules apply, any method of transferring property or rights must be considered, no matter how indirect
• Any occasion on which property or rights are indirectly transferred, or their value is enhanced, can trigger a charge to corporation tax on the resulting profit
• The rules specifically catch transactions at undervalue or overvalue, assignments of shares, partnership interests or trust interests, and the creation of options, consent requirements or embargoes affecting dispositions
• Disposals of property or rights on the winding up, dissolution or termination of a company, partnership or trust are also caught