James Darmon looks at the anti-avoidance rules on transactions in UK land and situations where those rules might apply.
When considering transactions in land or in property deriving its value from land (such as shares in land rich companies), it is important to consider the anti-avoidance rules, which might catch the unwary. This article looks at the transactions in UK land rules and when they might be applied.
The intention of the legislation
The intention of the transactions in land legislation is to tax as trading income profits arising on the development of land which might otherwise fall short of arising from a trade.
These profits can arise from:
- the direct development of land
