Section 356OB | Disposals of land in the United Kingdom

(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).