Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 8 para 2

Definition of alternative finance investment bond

Schedule 8 paragraph 2 defines the term "alternative finance investment bond" for the purposes of the schedule.

• An alternative finance investment bond is a specific type of Sharia-compliant financial arrangement
• The definition cross-refers to section 564G of the Income Tax Act 2007, which sets out investment bond arrangements
• These bonds allow investors to hold an interest in an underlying asset and receive a return linked to that asset, rather than receiving interest
• This definition ensures that LBTT treatment of such bonds is consistent with their treatment for income tax purposes