Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 11 paragraph 4

Exception to bond-holder protection where control of bond assets is acquired

Schedule 11 paragraph 4 removes the protection that normally prevents a bond-holder from being treated as having an interest in bond assets, where a bond-holder or group of connected bond-holders acquires control over those assets.

• The relief under paragraph 3 (which treats bond-holders as not having an interest in bond assets) is lost if a single bond-holder, or a group of connected bond-holders, acquires management and control of the underlying asset.
• Control is acquired when a bond-holder or connected group obtains sufficient rights to exercise management and control of the bond assets to the exclusion of all other bond-holders.
• The relief is preserved if the bond-holder did not know and had no reason to suspect that the acquisition gave them control, and they transfer sufficient rights as soon as reasonably practicable after becoming aware.
• The relief is also preserved where a bond-holder is merely underwriting a public offer of rights under the bond and does not actually exercise management and control of the bond assets.