Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 11 paragraph 14

Withdrawal of relief for the first transaction in alternative finance investment bonds

Schedule 11 paragraph 14 sets out the circumstances in which relief previously granted under paragraph 13 for the first transaction in an alternative finance investment bond arrangement is withdrawn, and explains how the resulting tax charge is calculated.

• Relief is withdrawn if the land is transferred back from B to A before conditions 5 and 6 (relating to the bond arrangement requirements) have been satisfied.
• Relief is also withdrawn if the specified time period expires and any one of conditions 5 or 6 remains unmet, or if it becomes apparent at any point that any of conditions 5 to 7 cannot or will not be fulfilled.
• Relief is separately withdrawn if condition 4 (another qualifying requirement for the arrangement) is not met.
• When relief is withdrawn, the tax due on the first transaction is calculated as though the chargeable consideration were the market value of the qualifying interest in land at the effective date of the transaction.