Finance Act, 1981

Amendment of section 17 (extension of charge under Case I of Schedule D to certain profits from dealing in or developing land) of Finance (Miscellaneous Provisions) Act, 1968.

28.—In relation to the computation for the purposes of income tax or corporation tax of the profits or gains or losses of any period ending on or after the 6th day of April, 1981, section 17 of the Finance (Miscellaneous Provisions) Act, 1968 , is hereby amended by the substitution of the following subsection for subsection (1)—

“(1) (a) Where, apart from this section, all or some of the activities of a business of dealing in or developing land would not be regarded as activities carried on in the course of a trade within Schedule D but would be so regarded if every disposal of an interest in land included among such activities (including a disposal of an interest in land which, apart from this section, is a disposal of the full interest in the land which the person carrying on the business had acquired) were treated as fulfilling both of the conditions specified in paragraph (b), the business shall be deemed to be wholly a trade within Schedule D or, as the case may be, part of such a trade and the profits or gains thereof shall be charged to tax under Case I of Schedule D accordingly.

(b) The conditions referred to in paragraph (a) are:

(i) that the disposal was a disposal of the full interest in the land which the person carrying on the business had acquired, and

(ii) that the interest disposed of had been acquired by such person in the course of the business.”.