1 Occupation of Business Premises 1
1.1 Status of property owners 1
1.2 Owner-occupation by traders, etc 3
1.3 Sub-letting of surplus accommodation 6
1.4 Sale and leaseback 7
1.5 Remediation of contaminated land - Land Remediation Relief 13
2 Property Letting 17
2.1 Introduction 17
2.2 Computation of property business profits 24
2.3 The property business rules: income tax 30
2.4 The business property rules: corporation tax 33
2.5 The business property rules: furnished lettings 34
2.6 Premiums, etc: general 37
2.7 Computations 45
2.8 Reverse premiums 52
2.9 Rent factoring 55
2.10 Transitional 57
2.11 Transfer of income streams 57
2.12 Exemptions and reliefs 59
2.13 Losses 61
2.14 International aspects 64
2.15 Historic （pre-1963） Schedule A 75
3 Property Dealing and Development 79
3.1 General 79
3.2 Taxable situations 81
3.3 What is a trade? 83
3.4 Joint ventures 94
3.5 Private Finance Initiative projects （PFI） 97
3.6 Computations 106
3.7 Appropriations to and from stock 110
3.8 Disposal of stock to another trader 112
3.9 Rental income 114
3.10 Premiums received and paid 115
3.11 Abortive and deferred expenditure 116
3.12 Waste disposal 117
3.13 Miscellaneous points 120
3.14 Timeshare schemes 121
3.15 Forward funding of property development 122
3.16 Exemptions and reliefs 124
3.17 Non-residents 125
3.18 Overseas property 128
4 ‘Artificial’ Transactions in Land 133
4.1 Introduction 133
4.2 Scope of provisions 135
4.3 Chargeable property 136
4.4 Timing 137
4.5 Development 137
4.6 Appropriation of dealing stock 137
4.7 Shares in property-dealing companies 138
4.8 Asset strippers 138
4.9 Acquisition of other interests 138
4.10 Intra-group transfers 139
4.11 Private residences 139
4.12 Non-residents and property situated abroad 139
4.13 Clearance procedure 140
4.14 Computation of chargeable profit 141
5 Capital Allowances 145
5.1 Introduction 145
5.2 Industrial buildings 149
5.3 Plant and machine 150
5.4 Other allowances 183
5.5 Treatment of allowances 194
6 Relief for Interest Payable 199
6.1 The general rules 199
6.2 Interest treated as a distribution 202
6.3 Thin capitalisation 206
6.4 Interest payable under deduction of tax 213
6.5 Other interest payable by individuals 214
6.6 Loan relationships 216
7 Construction Industry Scheme 227
7.1 Overview 227
7.2 Contractors 229
7.3 Subcontractors 232
7.4 Construction operations 232
7.5 Non-construction businesses 234
7.6 Gross payment requirement 235
7.7 Gross payments 237
7.8 Deductions from payments 239
7.9 Verifying subcontractors 241
7.10 Subcontractor’s payment and deduction statement 242
7.11 Records 243
7.12 Penalties 244
7.13 HMRC Guidance 245
8 Capital Gains 247
8.1 Introduction 247
8.2 Disposals 250
8.3 Computations 262
8.4 Computations - special rules 289
8.5 Exemptions and reliefs generally 312
8.6 Companies 337
8.7 Individuals, trustees and personal representatives 355
8.8 Partnerships 378
8.9 Overseas elements 386
8.10 Miscellaneous 398
9 Real Estate Investment Trusts 403
9.1 Overview of the legislation 403
9.2 Conditions for a company to qualify as a REIT 406
9.3 Tax liabilities of a REIT 408
9.4 Distributions from tax-exempt business 412
9.5 Tax liabilities of a shareholder in a REIT 413
9.6 Company becoming a REIT 414
9.7 Company ceasing to be a REIT 415
9.8 Groups 416
9.9 Joint ventures 418
9.10 Anti-avoidance 419
9.11 Miscellaneous 420
10 Inheritance Tax 421
10.1 Introduction 421
10.2 Sale of land from deceased’s estate 423
10.3 Payment of IHT by instalments 433
10.4 Business property relief （BPR） 439
10.5 Agricultural property relief （APR） 467
10.6 Woodlands 488
10.7 Gifts with reservation of bene№it 492
10.8 Pre-owned assets - the charge to income tax 505
11 Stamp Duty Land Tax （SDLT） 515
11.1 The charge to SDLT 515
11.2 Contract and conveyance 520
11.3 Assignments and sub-sales 521
11.4 Options and pre-emption rights 523
11.5 Exchanges 524
11.6 Exempt transactions 530
11.7 Exempt but potentially notifiable transactions 533
11.8 Computation of SDLT liability 537
11.9 Reliefs 571
11.10 Company reorganisations, reconstructions, acquisitions, etc 604
11.11 Administration 619
11.12 Partnerships 620
11.13 Special provisions 627
11.14 Transitional rules 636
11.15 Section 75A, Finance Act 2003 641
12 Value Added Tax 649
12.1 General principles and terms of VAT 649
12.2 Input tax concerns 653
12.3 Transfer of a business as a going concern （TOGC） 663
12.4 Place of supply of land, construction services, etc 667
12.5 Land transactions 669
12.6 Option to tax （OTT） 709
12.7 Construction services 723
12.8 Building materials 744
12.9 Other items 748
12.10 The capital goods scheme 748
12.11 Refund of tax to ‘do-it-yourself’ uilders 754
12.12 HMRC material and contact 757
13 Landfill Tax 759
13.1 General principles 759
13.2 Exemptions 765
13.3 Credits 770
13.4 Administration 772
13.5 Secondary liability 777
13.6 Enforcement 780
13.7 Impact on direct taxes 783
14 Aggregates Levy 785
14.1 General principles 785
14.2 Calculation of liability 786
14.3 Exempt aggregates and processes 788
14.4 Credits and refunds 792
14.5 Registration 795
14.6 Returns, payment and repayment of levy 799
14.7 Assessments, appeals and the review procedure 800
14.8 Ordinary interest and penalty interest 802
14.9 Enforcement 803
15 Local Taxes 807
15.1 An introduction to local taxation 807
15.2 Domestic/non-domestic property 814
15.3 Council tax 816
15.4 Business rating 824
Case Table 839
Legislation Finding List 847
HMRC Publications 867
Index 869