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The transactions in UK land rules are anti-avoidance rules that have been in the statute book in one form or another since before the introduction of capital gains tax in 1965.

Generally, if an individual sells land (which includes buildings and any estate or interest in land or buildings), on first principles it is taxable as either:

1. •

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

2. •

   a capital gain

For a discussion on when a sale of land or buildings could be considered to be trading income, see the Application of the badges of trade guidance note. Those rules on treating the sale as trading income have priority over the anti-avoidance provision discussed in this guidance note.

What if the transaction is not a trade or venture in the nature of trade, but the UK property was purchased or developed with the