Income Tax (Trading and Other Income) Act 2005 section 301

Claim for repayment of tax payable by virtue of section 284

Section 301 provides a mechanism for sellers to claim a tax repayment where a property sold with a right to reconveyance is reconveyed on a date different from the one used to calculate the original tax charge under section 284.

• This section applies where tax has been charged under section 284 on a sale with a right to reconveyance, and the reconveyance date was not fixed at the time of the sale
• The seller can claim a repayment equal to the difference between the tax actually paid and the tax that would have been due had the actual reconveyance date been used in the original calculation
• The repayment is calculated as amount A minus amount B, where A is the tax paid under section 284 and B is the tax that would have been payable based on the actual reconveyance date
• The claim must be made within four years after the day on which the estate or interest was reconveyed