Corporation Tax Act 2009 section 238

Claim for repayment of tax payable by virtue of section 224

Section 238 allows a seller to claim a repayment of overpaid corporation tax where a property was sold with a right to reconveyance and the reconveyance date was not fixed at the time of sale.

• Applies where a taxable receipt arose under section 224 (sales with right to reconveyance) and the reconveyance date was not predetermined in the sale terms
• The seller can claim a repayment equal to the difference between the tax actually paid and the tax that would have been due if the actual reconveyance date had been known from the outset
• The claim must be made within 4 years of the date the estate or interest was reconveyed
• The original source legislation allowed a 6-year claim window, but this was reduced to 4 years by Treasury order