Section 356OE | Disposals within section 356OD: profits treated as trading profits

(1)The relevant amount is to be treated for corporation tax purposes as profits of a trade carried on by the chargeable company.

(2)If the chargeable company is non-UK resident, that trade is the company's trade of dealing in or developing UK land.

(3)But subsection (1) does not apply to an amount so far as it would (apart from this section) be brought into account as income in calculating profits (of any person)—

(a)for corporation tax purposes, or

(b)for income tax purposes.

(4)The profits are treated as arising in the accounting period of the chargeable company in which the profit or gain is realised.

(5)In this section the “relevant amount” means so much (if any) of the profit or gain mentioned in section 356OD(1) as is attributable, on a just and reasonable apportionment, to the relevant UK assets.

(6)In this section “the relevant UK assets” means any land in the United Kingdom from which the property mentioned in section 356OD(1) derives any of its value (at the time of the disposal mentioned in that subsection).

(7)This section applies in relation to gains which are capital in nature as it applies in relation to other gains.