BIM60625 | Profits from a trade of dealing in or developing UK land: Period in which the gain is taxed

The profit or gain is chargeable in the:

• tax year in which the gain arises (where the person liable for the tax is an individual, a trustee or a personal representative), or

• accounting period in which the gain arises (where the person liable for the tax is a company). Guidance on accounting periods can be found at CTM01410

Example 1

Company X has an accounting period ending on 31 December 2017. It disposes of a property on 12 May 2017. The profit will be taxable in the accounting period ending 31 December 2017.

Example 2

Non-UK resident Company X is not currently within the charge to UK taxation but is developing land in the UK for sale. The company will come within the charge to UK taxation on making its first disposal of UK land on or after 5 July 2016.

Example 3

Non-UK resident Company Y had a permanent establishment in the UK prior to the introduction of the new legislation in July 2016. As the company has been chargeable to CT throughout this will not cause the cessation of a tax accounting period and the commencement of a new one.