Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 8 para 21

Replacement land under alternative finance investment bonds

Schedule 8 paragraph 21 deals with the situation where land held as a bond asset under an alternative finance investment bond is replaced with different land, and explains how the LBTT reliefs and security requirements apply to both the original and the replacement land.

• Where original bond land is returned to P before the bond ends and P and Q enter into new arrangements for replacement land of equal or greater value, the existing relief provisions (paragraphs 15 to 20) apply to both the original and the replacement land, with certain modifications.
• The requirement that the bond must have terminated (condition F) does not need to be satisfied in relation to the original land, provided that conditions A, B, C, F and G are met in relation to the replacement land.
• For the replacement land, the condition about prior ownership (condition E) is judged by reference to the original land, and the public register requirement (condition G) is assessed by reference to the first transaction relating to the original land.
• The security over the original land is released once Q provides Revenue Scotland with prescribed evidence that condition G is met for the original land, and — if the replacement land is in Scotland — condition D (security registration) is met for the replacement land, or — if it is outside Scotland — conditions A to C are met for the replacement land.