Section 517L | Gain attributable to period before intention to develop formed ^F1

(1)Subsection (2) applies if—

(a)subsection (1) of section 517C applies because Condition D in section 517B is met (land developed with purpose of realising a gain from its disposal when developed), and

(b)part of the profit or gain mentioned in that subsection is fairly attributable to a period before the intention to develop was formed.

(2)Section 517C(1) has effect as if the person mentioned in section 517B(1) had not realised that part of the profit or gain.

(3)Subsection (4) applies if—

(a)section 517E(1) applies, and

(b)part of the profit or gain mentioned in section 517E(5) is fairly attributable to a period before the person mentioned in section 517D(1) was a party to, or concerned in, the arrangement in question.

(4)Section 517E has effect as if the person had not realised that part of the profit or gain.

(5)In applying this section account must be taken of the treatment under Part 2 of ITTOIA 2005 (trading income) of a person who appropriates land as trading stock.