CB 10 Disposal within 10 years: land development or subdivision business
Income

(1)

An amount that a person derives from disposing of land is income of the person if—

(a)

they dispose of the land within 10 years of acquiring it; and

(b)

at the time they acquired the land, they carried on a business of developing land or dividing land into lots, whether or not the land was acquired for the purpose of the business.

Income: associated person in business of developing or subdividing land

(2)

An amount that a person (person A) derives from disposing of land within 10 years of acquiring it is income of person A if a person (person B) associated with them at the time the land was acquired carried on a business of developing land or dividing land into lots, whether or not—

(a)

person A carried on a business of developing land or dividing land into lots:

(b)

the land was acquired for the purpose of person B’s business.

Exclusions

(3)

Subsection (2) is overridden by the exclusion for bodies controlled by a local authority in section CB 15C and subsections (1) and (2) are overridden by the exclusions for residential land in section CB 16 and for business premises in section CB 19.

Defined in this Act: amount, associated person, business, dispose, income, land, year

Compare: 2004 No 35 s CB 8

Section CB 10(3): amended (with effect on 1 September 2015), on 30 March 2017, by section 10 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).