Commentary on Sections Overview Overview Section 756: Income treated as arising where gains obtained from some land disposals
2215.This section sets out the circumstances in which income is treated as arising. It is based on section 776(2), (3), (5), (13) and (14) of ICTA.
2216.Subsection (1) specifies the requirements which must all be met if this section is to apply. One of the requirements is that all or any part of the land is situated in the United Kingdom.
2217.HMRC’s interpretation of the territorial scope of section 776 of ICTA is summarised in the table below.
2218.This section and section 759 reflect this interpretation, and make a minor change in the law (although not in practice). See Change 115 in Annex 1.
2219.The expression “all or part of the land” in subsection (1)(c) is based on section 776(14) of ICTA; it will (for example) cover a case in which several areas of land, some within the UK and some outside the United Kingdom, pass under a single bargain. In such a case, if the person liable is non-UK resident, the total consideration will be apportioned, and the provisions will be applied to the separate gain for each area of land in the United Kingdom to arrive at the non-UK resident’s deemed income.
2220.If this section applies, subsection (2) treats the gain as income and deems it to arise when the gain is realised.
2221.For the sake of consistency with the rest of the section, subsection (5) refers to the opportunity of “realising” a gain, rather than (as in the source legislation) the opportunity of “making” it. This difference is verbal not substantive.