Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 11 paragraph 2

Definitions for alternative finance investment bonds

Schedule 11 paragraph 2 defines the key terms used throughout the Schedule dealing with alternative finance investment bonds and related land transactions.

• An alternative finance investment bond refers to investment bond arrangements as defined in section 564G of the Income Tax Act 2007, which provides for Sharia-compliant and other alternative finance products.
• Key bond-related terms — bond assets, bond-holder, bond-issuer, and capital — all take their meanings from the same Income Tax Act 2007 provision.
• The term "arrangements" is drawn very broadly to include any agreement, understanding, scheme, transaction, or series of these, whether or not they are legally enforceable.
• A "qualifying interest" means a major interest in land, but excludes short leases of 21 years or less, while "prescribed" means specified in regulations made by the Welsh Ministers.