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If an individual disposes of land (which includes buildings and any estate or interest in land or buildings), on first principles it will be taxable as either:

1. •

   trading income (if it is a trade or a venture in the nature of trade), or

2. •

   a capital gain (but see anti-avoidance below)

For a discussion of when the disposal of land or buildings could be considered to be trading income, see the Application of the badges of trade guidance note. The rules on treating the sale as trading income have priority over the capital gains tax treatment discussed in this guidance note.

However, what if the disposal of land is not considered to be a trade or a venture in the nature of trade but it is still a disposal with the intention of making a profit similar to that of a property dealer? This is where the transactions in UK land anti-avoidance provisions