Corporation Tax Act 2010 section 356OL

Profits attributable to period before relevant activities etc began

Section 356OL excludes from the transactions in UK land rules any portion of a profit or gain that is fairly attributable to a period before the relevant development intention was formed or before the person became involved in the relevant arrangement.

• Where land is developed with the purpose of realising a gain on disposal, any part of the profit fairly attributable to the period before the development intention was formed is excluded from the charge to corporation tax as a trading profit.
• Where a person is party to an arrangement involving property deriving its value from UK land, any part of the profit fairly attributable to the period before that person joined the arrangement is similarly excluded.
• In both cases, the legislation treats the person as if they had not realised the excluded portion of the profit or gain.
• When applying this section, account must be taken of the corporation tax rules on trading income that deal with a company appropriating land as trading stock.