Special rules for land dealers, developers, subdividers and builders and for people associated with them
You may have to pay tax on any profits that you make on a property sale if:
- you or someone associated with you was in the business of dealing in, subdividing, developing land when you bought the land, and:
- you bought the land for this purpose, or
- you bought and sold the land within 10 years regardless of your purpose for buying it.
- you bought the land:
- for the pupose of your building business (or an associated person's building business) and there were improvements made before or after the land was purchased, or
- you sold it 10 years after completing improvements to it and you or someone associated with you carried on a building business when the improvements were started regardless of whether the land was bought for the business.
- you bought the land and within 10 years you or someone on your behalf began to develop or divide it into lots in more than a minor way (taking into account the time, effort and expense involved).
Date published: 07 Mar 2008
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