Section 356OB — Corporation Tax Act 2010: Disposals of land in the United Kingdom

Disposals of land in the United Kingdom 356OB 1 Section 356OC(1) applies (subject to subsection (3) of that section) if—

a a person within subsection (2)(a), (b) or (c) realises a profit or gain from a disposal of any land in the United Kingdom, and b any of conditions A to D is met in relation to the land.

2 The persons referred to in subsection (1) are—

a the person acquiring, holding or developing the land, b a person who is associated with the person in paragraph (a) at a relevant time, and c a person who is a party to, or concerned in, an arrangement within subsection (3).

3 An arrangement is within this subsection if—

a it is effected with respect to all or part of the land, and b it enables a profit or gain to be realised—

i by any indirect method, or ii by any series of transactions.

4 Condition A is that the main purpose, or one of the main purposes, of acquiring the land was to realise a profit or gain from disposing of the land.

5 Condition B is that the main purpose, or one of the main purposes, of acquiring any property deriving its value from the land was to realise a profit or gain from disposing of the land.

6 Condition C is that the land is held as trading stock.

7 Condition D is that (in a case where the land has been developed) the main purpose, or one of the main purposes, of developing the land was to realise a profit or gain from disposing of the land when developed.

8 In this section “ relevant time ” means any time in the period beginning when the activities of the project begin and ending 6 months after the disposal mentioned in subsection (1).

9 In this section “ the project ” means all activities carried out for any of the following purposes—

a the purposes of dealing in or developing the land, and b any other purposes mentioned in Conditions A to D.

10 For the purposes of this section a person (“A”) is associated with another person (“B”) if—

a A is connected with B by virtue of any of subsections (5) to (7) of section 1122 (read in accordance with section 1123), or b A is related to B (see section 356OT).