10HProhibition on recovering windfall gains tax under option or contract of sale of land

10H Prohibition on recovering windfall gains tax under option or contract of sale of land

(1) A provision of an option to enter into a contract of sale of land is of no effect to the extent that the provision purports to require the purchaser under the contract of sale of land to pay an amount for or towards tax payable under an existing windfall gains tax liability in respect of the land.

(2) A person must not grant an option to enter into a contract of sale in respect of land if—

(a) there is an existing windfall gains tax liability in respect of the land; and

(b) the option purports to require the purchaser of the land to pay an amount for or towards the tax payable under the windfall gains tax liability.

(3) A provision of a contract of sale of land is of no effect to the extent that the provision purports to require the purchaser under the contract to pay an amount for or towards tax payable under an existing windfall gains tax liability in respect of the land.

(4) A vendor must not enter into a contract of sale of land if—

(a) there is an existing windfall gains tax liability in respect of the land; and

(b) the contract purports to require the purchaser of the land to pay an amount for or towards tax payable under the windfall gains tax liability.

(5) In this section—

windfall gains tax liability means a liability for an amount of tax—

(a) arising under the Windfall Gains Tax Act 2021; and

(b) specified in a notice of assessment served on any person under section 14 of the Taxation Administration Act 1997.

S. 10I inserted by No. 38/2023 s. 16.