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Extension of Schedule D charge to certain profits from dealing in or developing land.
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97.—(1) Without prejudice to any other provision of this Act under which tax is to be charged under Schedule D, tax under that Schedule shall, subject to and in accordance with the provisions of this and the succeeding sections of this Chapter, be charged in respect of all profits or gains arising or accruing from any business of dealing in or developing land.
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(2) Without prejudice to the generality of the expression “dealing in or developing land”, a business of dealing in or developing land shall be deemed to be carried on where a person having an interest in any land—
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(a) disposes of that interest, or of an interest which derives therefrom, after he or a person connected with him has developed the land or secured its development or has entered into any obligation to develop the land or to secure its development,
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(b) disposes of that interest, or of an interest which derives therefrom, and the person to whom the disposition is made or a person connected with that person has at or before the time of the disposition entered into a contract (other than a contract with respect to which the Revenue Commissioners, or on appeal the Special Commissioners, are satisfied that the disponor had no knowledge of its existence and that he had no reason for thinking that it existed) for the development of the land, or the disposition is subject to any condition or stipulation as to the development of the land or is made in pursuance of any arrangement for the development of the land,
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(c) disposes of an interest which derives from that interest in such circumstances that, apart from this section, the consideration for the disposal would have fallen to be taken into account as a trading receipt of a trade carried on by him if it had been the consideration for the disposal of the full interest acquired by him, or
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(d) grants to any person for valuable consideration, other than a payment to which section 87 applies, any right in relation to the development of the land.
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Every reference in this subsection to disposing of an interest in, or to the development of, any land includes a reference to disposing of an interest in, or to the development of, any part of that land.
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(3) Where a person having acquired an interest in any land disposes of the whole of that interest after he has constructed, reconstructed, extended or altered any building on the land, his activities in relation to the land shall, notwithstanding anything in subsection (2) (a), be deemed not to have been carried out in the course of a business of dealing in or developing land where—
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(a) the person would, if the said activities were disregarded, not fall to be treated as having carried on, at any time within three years prior to the said disposal, a business of dealing in or developing land, and
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(b) either—
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(i) in a case in which the building was constructed or reconstructed, the period from the time when the construction or reconstruction was completed to the time when the interest was disposed of was not less than six years and for the whole of that period the person was the sole occupier of the building, or
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(ii) the person being an individual, the Revenue Commissioners, or on appeal the Special Commissioners, are satisfied that the building was constructed, reconstructed, extended or altered for exclusive occupation by him as his only or main residence and was in fact so occupied for substantially the whole of the period from the time when the construction, reconstruction, extension or alteration was completed to the time when the interest was disposed of, or
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(iii) the Revenue Commissioners, or on appeal the Special Commissioners, are satisfied that the building was constructed or reconstructed for exclusive occupation by the person as a farmhouse or farm building for the purpose of farming the land and was in fact so occupied for substantially the whole of the period from the time when the construction or reconstruction was completed to the time when the interest was disposed of, or
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(iv) in a case in which the building was reconstructed, extended or altered, for a period of not less than six years prior to the time when the reconstruction, extension or alteration was completed no part of the building was occupied otherwise than by the person or a parent or child of the person,
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and, for the purposes of paragraph (b) (ii), a building shall be deemed to be in the exclusive occupation of an individual as his residence where it is mainly occupied by him or by a parent or child of his as a residence and no part thereof is occupied for the purposes of a trade but a part thereof is occupied for the purposes of a profession.
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(4) (a) A business of dealing in or developing land shall be deemed to be a trade within Schedule D, or as the case may be, part of such a trade, and tax in respect of the profits or gains thereof shall be charged under Case I of the said Schedule D accordingly, both where, apart from this section, the business would fall to be regarded as such a trade or part of such a trade if every disposal of an interest in land effected in the course of the business was a disposal of the full interest in the land which the person carrying on the business had acquired and that interest had been acquired by him in the course of the business, as well as where, apart from this section, the business is such a trade or part of such a trade.
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(b) In any other case tax in respect of the profits or gains of a business of dealing in or developing land shall be charged under Case IV of Schedule D.
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