Part 18Transactions in land

Charge to tax on gains from transactions in land

822Method of calculating gain

1

Subsections (3) to (5) apply for calculating a gain for the purposes of this Part.

2

But, except so far as those subsections make provision, such method is to be used for those purposes as is just and reasonable in the circumstances.

3

The method must—

a

take into account the value of what is obtained for disposing of the land, and

b

allow only such expenses as are attributable to the land disposed of.

4

If a freehold is acquired and on disposal the reversion is retained, account may be taken of the way in which trading profits are calculated in such a case.

5

Account may be taken of the adjustments to be made in calculating trading profits under section 136 of CTA 2009 (lease premiums etc: reduction of receipts).

6

In this section “trading profits” means the profits under Part 3 of CTA 2009 (trading income) of a company dealing in land.

7

In the application of this section in Scotland—

  • freehold” means the interest of the owner, and

  • reversion” means the interest of the landlord in property subject to a lease.

8

See also section 826 (valuations and apportionments).