Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 11 paragraph 13

Relief from tax for the first transaction under an alternative finance investment bond

Schedule 11 paragraph 13 sets out when the first land transaction under an alternative finance investment bond arrangement is relieved from land transaction tax, and the conditions and time limit that must be satisfied.

• The first transaction in an alternative finance investment bond arrangement is exempt from land transaction tax, provided that conditions 1 to 3 (as set out elsewhere in the schedule) are all met within 30 days of the effective date of that transaction.
• If the original land interest used as the bond asset is later replaced by an interest in different land, additional rules under paragraph 18 apply and may modify how this relief operates.
• The relief is not available where a bond holder acquires control of the underlying asset, as set out in paragraph 17.
• Both the asset replacement rules and the bond holder control restriction act as limitations on the availability of this relief.