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

Schedule 21A paragraph 13: special tax site relief and alternative property finance (Sharia-compliant finance)

Schedule 21A paragraph 13 explains how special tax site relief interacts with alternative property finance arrangements, where land is sold to a financial institution and then leased back or re-sold to the person who originally sold it.

• This paragraph applies where Sharia-compliant or other alternative finance arrangements involve land being sold to a financial institution and either leased back or re-sold to the original seller.
• When determining whether special tax site relief can be claimed (or withdrawn) for the first transaction in such an arrangement, references to the "buyer" throughout the Schedule are read as references to the "relevant person" — that is, the individual or entity (not the financial institution) who entered into the finance arrangement.
• The test for whether land is held as trading stock for resale without development is applied by looking at the relevant person's position, not the financial institution's.
• The first transaction in an alternative finance arrangement can only qualify for special tax site relief through this paragraph — it cannot qualify by any other route under Part 2 of Schedule 21A.