Taxes Consolidation Act 1997 section 643

Tax to be charged under Case IV on gains from certain disposals of land

Section 643 charges gains of a capital nature from certain disposals of land, or property deriving its value from land, to income tax under Schedule D Case IV.

• A capital gain on a disposal of land acquired, held as trading stock, or developed with the sole or main object of realising a gain is taxed as income under Case IV of Schedule D, not as a capital gain.
• The charge extends to the land holder, any connected person, and any person who is a party to or concerned in an arrangement or scheme enabling the gain to be realised directly or indirectly.
• Any method by which property is transferred, or its value enhanced or diminished, may be taken into account, including transactions at undervalue or overvalue, assignments of shares or partnership interests, options over property, and disposals on a winding up.
• A gain which derives from value or an opportunity provided by another person is taxed on that other person, not on the person who actually realised the gain.