Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 48

Contingency ceases or consideration ascertained: repayment of tax

Section 48 explains how a buyer can claim a repayment of land transaction tax when a contingency is resolved or consideration is finally ascertained, and the result is that less tax is due than was originally paid.

• Where contingent, uncertain, or unascertained consideration is resolved and the tax actually due is less than the amount already paid, the buyer may seek a repayment of the overpaid tax.
• The buyer can either amend the original land transaction return within the permitted amendment window, or, if that window has closed, make a formal overpayment relief claim under the Tax Collection and Management (Wales) Act 2016.
• A formal claim must be made before the later of four years from the day after the filing date for the original return, or 12 months from the date of the event that resolved the contingency or ascertained the consideration.
• No repayment claim is available where the consideration consists of rent or annuities, nor in certain lease-related situations involving repayment of loans or deposits, or refunds of consideration that are contingent on the termination, assignment, or sub-grant of the lease.

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