Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 8 para 9

Condition B: alternative finance investment bonds

Schedule 8 paragraph 9 sets out Condition B, which must be met for alternative finance investment bond arrangements to qualify for special LBTT treatment, requiring that the party Q acts as bond-issuer and holds the relevant land as a bond asset.

• Condition B applies where Q enters into an alternative finance investment bond in the capacity of bond-issuer.
• The bond may be entered into either before or after the wider arrangements referred to in paragraph 8 of Schedule 8.
• The interest in land connected with those arrangements must be held by Q as a bond asset — that is, an asset underpinning the bond.
• Both elements — Q acting as bond-issuer and the land being held as a bond asset — must be satisfied for Condition B to be met.