Section 320 | Nature of item apportioned on sale of estate or interest in land

(1)This section applies if—

(a)a person sells an estate or interest in land,

(b)on the sale a part of a receipt or outgoing in respect of the estate or interest is apportioned to the seller, and

(c)the receipt or outgoing is receivable or to be paid by the buyer after the apportionment is made.

(2)In calculating the profits of the seller's property business, the part apportioned is treated as being of the same nature as the receipt or outgoing.