Taxes Consolidation Act 1997 section 639

Interpretation (Chapter 1)

Section 639 defines key terms and sets out interpretive rules used throughout the Chapter on the taxation of profits from dealing in or developing land.

• "Development" covers the construction, demolition, extension, alteration or reconstruction of buildings, and engineering works that adapt land for materially altered use — but not mere maintenance or repair.
• The granting of a lease or other new interest in land counts as a disposal, and an option to acquire or dispose of land is itself treated as an interest in land.
• Mortgaging property as security, or granting a lease with no fine or premium, is not a disposal for the purposes of the Chapter.
• The Chapter overrides the rental income rules in Chapter 8 of Part 4, though separate anti-double-taxation provisions prevent a premium being taxed both as rent and as a trading receipt.