Income Tax (Trading and Other Income) Act 2005 section 302

Claim for repayment of tax payable by virtue of section 285

Section 302 allows a seller in a sale and leaseback arrangement to claim a tax repayment where the lease was granted on a different date from that used to calculate the original tax charge under section 285.

• This section applies where there has been a taxable receipt under the sale and leaseback rules in section 285, and the date for the grant of the lease was not fixed under the terms of the sale
• The seller can claim a repayment equal to the difference between the tax actually paid under section 285 and the tax that would have been payable if the calculation had been based on the actual date the lease was granted
• The repayment is calculated as A minus B, where A is the tax actually paid and B is the tax that would have been due using the actual lease grant date
• The claim must be made within 4 years after the day on which the lease was granted