How does section 356OR of the Corporation Tax Act 2010 define 'land'?

Section 356OR defines 'land' broadly for the purposes of Part 8ZB. It includes buildings and structures on land, any estate, interest or right in or over land such as freeholds, leaseholds, easements and covenants, and land under the sea or otherwise covered by water, ensuring comprehensive coverage regardless of physical nature.

What is 'property deriving its value from land' under section 356OR?

Property deriving its value from land includes shareholdings in companies, partnership interests, and interests in settled property where the value derives directly or indirectly from land. This catches indirect holdings, so selling shares in a land-rich company falls within the transactions in UK land rules under Part 8ZB.

Are options and embargoes affecting land caught by section 356OR?

Yes. Section 356OR treats any option, consent or embargo affecting the disposition of land as property deriving its value from land. For example, an option to purchase a development site or a restrictive covenant controlling how land is sold falls within the definition, preventing avoidance through such instruments.

Why are the definitions in section 356OR important for corporation tax?

These definitions underpin the transactions in UK land rules in Part 8ZB, which can bring profits into the corporation tax charge as trading profits. The broad scope ensures arrangements involving indirect interests in land, such as holding land through companies or partnerships, cannot be structured to fall outside the rules.

Corporation Tax Act 2010 section 356OR

"Land" and related expressions

Section 356OR defines the meaning of "land" and "property deriving its value from land" for the purposes of the transactions in UK land rules in Part 8ZB.

"Land" is defined broadly to include buildings, structures, any estate, interest or right in or over land, and land under the sea or otherwise covered by water.
Property deriving its value from land includes shareholdings in companies, partnership interests, and interests in settled property where the value derives directly or indirectly from land.
Options, consents or embargoes affecting the disposition of land are also treated as property deriving its value from land.
These wide definitions ensure that arrangements involving indirect interests in land — such as holding land through a company or partnership — fall within the scope of the rules.

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