Taxes Consolidation Act 1997 section 648

Interpretation (Chapter 2)

Section 648 sets out definitions used in the capital gains tax charge on disposals of development land.

• Development land is land in the State (or unquoted shares deriving their value from such land) where the sale price or market value exceeds its current use value at the time of disposal.
• Current use value is the market value of the land on the assumption that it was, and would remain, unlawful to carry out any development other than development of a minor nature.
• Development of a minor nature means development that is exempt from planning permission, but does not include development carried out by a local authority such as the construction of local authority housing.
• A compulsory disposal is a disposal to an authority exercising compulsory purchase powers, but does not include a reverse compulsory purchase initiated by the landowner under the Local Government (Planning and Development) Act 1963 section 29.