Land and Buildings Transaction Tax (Scotland) Act 2013 section 22

Successive replacements of land in alternative finance investment bonds

Section 22 of Schedule 8 confirms that the rules for substituting a replacement asset under an alternative finance investment bond also apply when that replacement land is itself replaced by yet another piece of land, creating a chain of substitutions.

• The relief rules that apply when original bond land is swapped for replacement land also apply to any further replacement in the chain.
• When a further replacement occurs, references to the "original land" in the relief provisions are read as referring to the most recent replacement land being swapped out.
• References to the "replacement land" are read as referring to the new further replacement land being swapped in.
• The only exception is that the definition of the original transaction (in paragraph 21(4)) continues to refer back to the very first piece of land acquired under the bond.