Income Tax Act 2007 section 257MR

Excluded activities: property development

Section 257MR defines "property development" as an excluded activity for the purposes of social investment tax relief, explaining when land development falls outside the scope of qualifying activities.

• Property development means developing land where the company has or has had an interest in that land, and the sole or main purpose is to profit from disposing of it once developed.
• An "interest in land" covers any estate, interest, right in or over land, including rights affecting its use or disposition, and conditional rights to obtain such interests from another party.
• The interest of a creditor whose debt is secured by a mortgage, mortgage agreement, or charge over land is not treated as an interest in land (unless the creditor holds a rentcharge).
• In Scotland, the interest of a creditor in any charge or security over land is similarly excluded from the definition of an interest in land.