Part 2Trading income

Chapter 2Income taxed as trade profits

Trades and trade profits

12Profits of mines, quarries and other concerns

1

Profits or losses arising out of land in the case of a concern to which this section applies are calculated as if the concern were a trade.

2

Any profits arising out of the land are charged to income tax as if the concern were a trade carried on in the United Kingdom.

But this does not impose a charge to tax on a non-UK resident in the case of a concern outside the United Kingdom.

3

Any losses arising out of the land are treated for the purposes of F1Part 4 of ITA 2007(loss relief) as losses of a trade carried on in the United Kingdom.

4

The concerns to which this section applies are—

a

mines and quarries (including gravel pits, sand pits and brickfields),

b

ironworks, gasworks, salt springs or works, alum mines or works, waterworks and streams of water,

c

canals, inland navigation, docks and drains or levels,

d

rights of fishing,

e

rights of markets and fairs, tolls, bridges and ferries,

f

railways and other kinds of way, and

g

a concern of the same kind as one specified in paragraph (b), (c), (d) or (e).

5

This section does not apply to a concern if section 10 (commercial occupation of land other than woodlands) applies to the occupation of the land out of which the profits or losses arise.