Income Tax Act 2007 section 196

Excluded activities: property development

Section 196 defines "property development" as an excluded activity for the purposes of the Enterprise Investment Scheme, and clarifies what constitutes an "interest in land" in that context.

• Property development means developing land where the company has or has had an interest in the land, and the main aim is to profit from selling that interest once the land is developed
• An interest in land covers any estate, right or interest in or over land, including rights affecting its use or disposal, and conditional rights to obtain such interests
• Secured creditors' interests — such as mortgages and charges over land — are excluded from the definition of an interest in land
• For land in Scotland, a creditor's interest in any charge or security over land is similarly excluded

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