Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 11 para 1

Introduction to relief for alternative finance investment bonds

Schedule 11, paragraph 1 introduces the Schedule dealing with land transaction tax relief for certain transactions connected to alternative finance investment bonds, and provides a guide to how the Schedule is structured.

• The Schedule provides relief from land transaction tax for certain land transactions connected to alternative finance investment bonds (such as sukuk or similar Sharia-compliant financial products).
• Part 2 treats certain events relating to a bond — such as issuing, transferring, or redeeming rights — as not being chargeable transactions, with exceptions where the bond holder acquires control of the underlying asset.
• Parts 3 and 4 set out the conditions that must be met for relief on specific transactions, together with rules on when relief may be withdrawn or is unavailable.
• Part 5 covers supplementary matters, including how the relief applies when the underlying asset is replaced by another asset, and requires the Welsh Revenue Authority to notify the Chief Land Registrar when a registered charge under the Schedule is discharged.