Part 3

Trading income
Chapter 2

Income taxed as trade profits

Trades and trade profits

Commercial occupation of land other than woodlands
38
1
The commercial occupation of land in the United Kingdom is treated for corporation tax purposes as the carrying on of a trade or part of a trade.
2
For this purpose the occupation of land is commercial if the land is managed—
a
on a commercial basis, and
b
with a view to the realisation of profits.
3
This section does not apply—
a
to farming or market gardening (which is dealt with by section 36),
b
if the land is being prepared for forestry purposes,
c
if the land comprises woodlands (which is dealt with by section 37), or
d
to the occupation by an insurance company of land which is an asset of the company’s long-term insurance fund.