The measure

New legislation relating to profits from trading in and developing land in the UK was announced at Budget 2016 and took effect for disposals of property on or after 5 July 2016. The legislation originally excluded profits from disposals made on or after 5 July 2016, where the contract was entered into prior to that date.

Legislation will be introduced in Finance Bill 2017 to ensure that all profits that are recognised in the accounts on or after 8 March 2017 will be taxed, even if the contract for disposal was entered into prior to 5 July 2016.

Who will be affected?

Businesses that carry on a trade of dealing in or developing land in the UK.

When?

Finance Bill 2017

Our view

This measure ensures that the rules set out in Finance Act 2016 work as intended as the original rules resulted in some profits from long term contracts not being within the charge.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.