Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 11 para 15

Relief from tax on the second transaction in an alternative finance investment bond arrangement

Schedule 11, paragraph 15 sets out the conditions under which the second transaction in an alternative finance investment bond arrangement is relieved from land transaction tax.

• The second transaction (the transfer back or onward sale of the land interest) is exempt from land transaction tax provided all seven qualifying conditions are satisfied and the relevant compliance obligations have been met.
• Compliance with both the Land Transaction Tax Act and the Tax Collection and Management (Wales) Act 2016 in relation to the first transaction is a prerequisite for claiming relief on the second transaction.
• If the original land interest used as the bond asset is replaced by an interest in different land, the relief is subject to additional rules on asset replacement (paragraph 18).
• Relief is not available where a bond holder acquires control of the underlying asset, as set out in the anti-avoidance rule in paragraph 17.