For updates affecting this Division please see Part C0 Updates
Land and interests in land—generally
C2.1101 Land and capital gains—overview
The principles of computation of chargeable gains and allowable losses, as set out in Divisions C2.1–C2.6, apply to assets consisting of land or interests in land as they do to other assets. However, there are additionally a number of provisions relating specifically to land and interests in land, and this Division discusses those provisions.
Should the transaction be taxed as income?
Before considering the application of the chargeable gains rules to a transaction in land, it is necessary to consider whether the consideration will be chargeable to tax as income or treated as a receipt in computing taxable income. The consideration for the disposal of land or an interest in land is reduced by any amount which is taken into account for the purposes of computing tax on income1. See C2.102.
Division B5.2 deals in detail with the distinction between capital and revenue transactions in relation to land, and also with the anti-avoidance
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