Section 196 — Income Tax Act 2007: Excluded activities: property development

Excluded activities: property development 196 1 This section supplements section 192(1)(g). 2 “ Property development ” means the development of land—

a by a company which has, or at any time has had, an interest in the land, and b with the sole or main object of realising a gain from the disposal of an interest in the land when it is developed.

3 For this purpose “ interest in land ” means, subject to subsection (4)—

a any estate, interest or right in or over land, including any right affecting the use or disposition of land, or b any right to obtain such an estate, interest or right from another which is conditional on the other's ability to grant it.

4 References in this section to an interest in land do not include—

a the interest of a creditor (other than a creditor in respect of a rentcharge) whose debt is secured by way of mortgage, an agreement for a mortgage or a charge of any kind over land, or b in the case of land in Scotland, the interest of a creditor in a charge or security of any kind over land.