|Development land tax (UK)|
A tax levied on the proceeds from the sale of land for development purposes. The tax is heavy and intended to reduce the large windfall profits that can arise when freehold or leasehold land is acquired for major redevelopment by private investors or by local or public authorities - in the latter case often under a compulsory purchase order. The regulations surrounding this tax are many and complex and cannot be adequately summarized. Reference should be made to the relevant legislation.
|Reference: The Penguin Business Dictionary, 3rd edt.|