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Property development (7): A ‘slice of the action’

Shared from Tax Insider: Property development (7): A ‘slice of the action’
By Lee Sharpe, August 2021

Lee Sharpe looks at circumstances involving the sale of land or property for development – so-called 'slice of the action' arrangements. 

In the previous case study, I looked at what might happen if a landlord or landlady were to decide to develop their rental property for onward sale; and warned that, in some relatively common situations, a rather nasty immediate capital gains tax (CGT) 'deemed disposal' might arise, and income tax might be charged on the development phase. 

I will now consider the scenario where the landlord decides simply to sell the property as a development opportunity for a third party to exploit (which could, in some cases, be the landlord or landlady's separate property development company). Often, it is not as simple as a sale for a fixed sum payable immediately. 

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