Income Tax Act 2007 section 755

Charge to tax on gains from transactions in land

Section 755 imposes the income tax charge on gains realised from transactions in land, forming the starting point of a group of provisions that target profits from land dealings.

• Where a person realises a gain from a transaction in land, that gain is charged to income tax as income rather than as a capital gain.
• The charge applies to gains that have a sufficiently close connection with land, ensuring that profits derived from land dealings are brought within the income tax net.
• The section forms the opening provision of a core group of rules (sections 755 to 760) that together govern how gains from land transactions are identified, calculated, and taxed.
• Certain exemptions from this charge exist and are signposted within the section, so not every gain from a land transaction will necessarily be caught.