It is possible that although a clearance under ICTA88/S776 is
appropriate, the transaction may fall within Case I of Schedule D
as a land trading transaction (see
BIM60001 onwards).
In such cases please add to your clearance letter a paragraph
stating that the provision of a clearance under Section 776 does
not prevent the Inland Revenue from making an
assessment under Schedule D Case I where it is thought appropriate
to do so.
