Interesting question today.
The 25% rate applies to profits from dealing in or developing land.
It does not apply to
- Construction operations, i.e., construction type work, including installation of plumbing, electricity, gas, air-conditioning etc, cleaning of buildings, site clearance work, and haulage of building materials and equipment.
- Dealing or developing in "fully developed" land (qualifying land), i.e., land on which a building or structure had been constructed by or for the company before that time, and which at the time of the development, was not expected be further developed, apart from non-material development, within the following 20 years.
In simple language this means the 12.5% rate applies to trading profits
- of building contractors and subcontractors,
- derived from sale of newly constructed property the builder has developed (e.g., "new" houses).
