Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 11 paragraph 18

Replacement of bond asset land

Schedule 11 paragraph 18 deals with the situation where land held as an alternative finance investment bond asset is replaced with different land, and explains how the relief provisions and security charge requirements apply to both the original and replacement land.

• Where original bond land is transferred back to A before the bond ends and is replaced with other land of equal or greater value, the relief provisions for the first and second transactions still apply, subject to certain modifications.
• The requirement for a second transaction (condition 6) does not need to be met for the original land, provided the standard conditions — including the second transaction requirement — are met for the replacement land instead.
• The security charge on the original land is released once the bond holder provides WRA with evidence that conditions are met for the original land, and either a charge is registered against the replacement land (if in Wales) or the key conditions are satisfied for the replacement land (if outside Wales).
• These rules apply equally where replacement land is itself replaced by further replacement land, with references adjusted accordingly in a chain of substitutions.