We are the committee of a social club and wish to sell part of the land for house building. We intend to use the proceeds of this sale to redevelop the existing club. Given that we are reinvesting in the club and there will be no personal gain, would the club be liable fortax and, ifso, what?

Arthur Weller replies:
If you look at HMRC’s Company Taxation manual (at www.gov.uk/hmrc-internal-manuals/company-taxationmanual/ctm40105) you can see that this capital gain is subject to corporation tax in the regular way. However the fact that you are going to reinvest may entitle you to claim roll-over relief for replacement of business assets – see HMRC’s Capital Gains manual (at www.gov.uk/hmrcinternal-manuals/capital-gains-manual/cg60260)