BIM51505 - Builders, property dealers & developers: Background

When considering whether profits derived from the acquisition and disposal of property (with or without development) are assessable as income and, if so, under what Case of Schedule D, you should consider

• BIM20050 onwards Trade and trading operations
• BIM60000 onwards: Land - trading transactions.

Where there is no liability on such profits under Schedule D Case I, liability may in certain circumstances arise under Schedule D Case VI by virtue of ICTA88/S776 (see BIM60300 onwards). Where appropriate in a contentious case, alternative assessments should be made under Case I and Case VI by virtue of ICTA88/S776 (see BIM60385).

In cases in which the question of the valuation of land and buildings is material to the determination of a Case I liability, see the guidance at BIM51560 onwards.