Land acquired from a company or person connected with the member

If, exceptionally, you know that land or interest in land has been acquired from a connected party, but are not sure which category applies, answer the question to the best of your judgement.

Include land or an interest in land owned during the return period, even if it was acquired before the start of the return period 

Land includes buildings, for example, houses, offices and factories. It is all land and buildings including, for example, residential, commercial, agricultural, forestry. An interest in land includes both a freehold and a leasehold interest, and jointly held interests. It is not limited to land and buildings in the UK.

Where there has been expenditure on improvements, this will be reflected in the market value of the asset, and should be added to the costs where property is shown at cost.

For more information regarding Indirect Holding see RPSM07109410 onwards.

Other useful definitions

Connected with – see RPSM12301290

Controlling director means a director to whom paragraph (b) of Section 417(5) Income and Corporation Taxes Act 1988 applies and is a director who, either on their own or with one or more associates beneficially owns or is able to control, directly, indirectly or through other companies, 20% or more of the ordinary share capital of the company. The expression 'with one or more associates' means that a person is treated as owning or, as the case may be, controlling, what any associate owns or controls, even if he or she does not own or control any share capital.

Director is defined at Section 417(5) Income and Corporation Taxes Act 1988 and is broadly:

• any person occupying the position of director by whatever name called
• any person in accordance with whose directions or instructions the directors are accustomed to act
• any person who is a manager or concerned with the management of the company and is a controlling director

For more detail see the guidance in the Company Taxation Manual at page CTM60180.

Genuinely diverse commercial vehicle – see RPSM07109420

Investment Regulated Pension Scheme – see RPSM07109050

Residential property – see RPSM07109060

RPSM is the Registered Pension Schemes Manual which can be found at www.hmrc.gov.uk/pensionschemes/index.htmA close company is defined at Section 414 Income and Corporation Taxes Act 1988, and is broadly a company whose assets are controlled by five or fewer participators. For more information look at the guidance in the Company Taxation Manual starting at page CTM60060.

'Participator' in relation to a company has the meaning given to it in Section 416 Income and Corporation Taxes Act 1988 and is broadly a person having a share or interest in the capital or income of the company and can include a loan creditor. For more information see the guidance in the Company Taxation Manual at page CTM60107.

The Company Taxation Manual (CTM) is published at www.hmrc.gov.uk/manuals/ctmanual/index.htm