Corporation Tax Act 2010 section 356OS

References to realising a gain

Section 356OS clarifies what it means to "realise a gain" for the purposes of the UK land transaction rules, and ensures that passing on a profit opportunity to someone else does not take the transaction outside the scope of those rules.

• A person who realises a profit or gain from UK land transactions is within the rules regardless of whether that profit or gain is realised for themselves or for another person.
• If a person transfers the opportunity to make a profit or gain to someone else — for example, through a premature sale — the person who transferred the opportunity is treated as having realised the other person's profit or gain on that other person's behalf.
• This provision prevents avoidance by ensuring that simply redirecting a gain to another party does not escape the charge to corporation tax under these rules.
• The rule applies in relation to both direct disposals of UK land (section 356OB) and disposals of property deriving its value from UK land (section 356OD).