Conveyances and transfers in contemplation of sale
21.—(1) Subject to this section, any instrument by which property is conveyed or transferred to any person in contemplation of a sale of that property is treated for the purpose of this Act as a conveyance or transfer on sale of that property for a consideration equal to the value of that property.
(2) If, on a claim made to the Commissioner not later than one year after the making or execution of an instrument chargeable with duty in accordance with subsection (1), it is shown to the Commissioner’s satisfaction —
(a)
that the sale in contemplation of which the instrument was made or executed has not taken place and the property has been reconveyed or retransferred to the person (P) from whom it was conveyed or transferred, or to a person to whom P’s rights have been transmitted on death or bankruptcy; or
(b)
that the sale has taken place for a consideration which is less than the value in respect of which duty was paid on the instrument by virtue of this section,
the Commissioner must repay the duty paid by virtue of this section —
(c)
in a case falling under paragraph (a), so far as it exceeds the duty which would have been payable apart from this section; and
(d)
in a case falling under paragraph (b), so far as it exceeds the duty which would have been payable if the instrument had been stamped in accordance with subsection (1) in respect of a value equal to the consideration in question.
(3) In a case falling under subsection (2)(b), duty is not repayable if it appears to the Commissioner that the circumstances are such that a conveyance or transfer on the sale in question would have been chargeable with duty under section 16(2).
(4) No instrument chargeable with duty in accordance with subsection (1) is deemed to be duly stamped unless the Commissioner has been required to express an opinion thereon under section 37 and has expressed his or her opinion in accordance with that section.
(5) Subsections (1) to (4) apply whether or not an instrument conveys or transfers other property in addition to the property in contemplation of the sale of which the instrument is made or executed, but the provisions of those subsections do not affect the duty chargeable on the instrument in respect of that other property.
(6) For the purpose of subsection (1), the value of property conveyed or transferred by an instrument chargeable with duty is to be determined without regard to —
(a)
any power (whether or not contained in the instrument) on the exercise of which the property, or any part of or any interest in the property, may be revested in the person from whom it was conveyed or transferred (P) or in any person on P’s behalf; or
(b)
any annuity reserved out of the property or any part of it, or any life or other interest so reserved, being an interest which is subject to forfeiture.
(7) If, on a claim made to the Commissioner not later than one year after the making or execution of the instrument, it is shown to the Commissioner’s satisfaction that any such power mentioned in subsection (6)(a) has been exercised in relation to the property and the property or any property representing it has been reconveyed or retransferred in whole or in part in consequence of that exercise, the Commissioner must repay the duty paid by virtue of subsection (6) —
(a)
in a case where the whole of such property has been so reconveyed or retransferred, so far as it exceeds the duty which would have been payable apart from subsection (6); and
(b)
in any other case, so far as it exceeds the duty which would have been payable if the instrument had operated to convey or transfer only such property as is not so reconveyed or retransferred.