Corporation Tax Act 2010 section 652

Exemption for gains on disposals of land to members

Section 652 exempts approved self-build societies from corporation tax on chargeable gains arising when they sell land to their members.

• When a self-build society sells land to one of its members and a chargeable gain arises, the gain may be exempt from corporation tax.
• The exemption only applies during an accounting period (or part of one) in which the society held approved status under the self-build society provisions.
• The society must make a claim under this section for the relevant accounting period or part period in order to benefit from the exemption.
• If all three conditions are met, no corporation tax liability arises on those chargeable gains.