Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 11 para 7

Condition 2: alternative finance investment bond requirement

Schedule 11, paragraph 7 sets out the second condition that must be met for a land transaction to qualify for relief under the alternative finance investment bond provisions, requiring that the party acts as a bond-issuer and holds the relevant land as a bond asset.

• The party (referred to as B) must enter into an alternative finance investment bond in their capacity as the bond-issuer.
• It does not matter whether the bond is entered into before or after the land arrangements described in condition 1 are put in place.
• The interest in land connected with the condition 1 arrangements must be held by B specifically as a bond asset — that is, as part of the pool of assets underpinning the bond.
• Both elements of this condition — being the bond-issuer and holding the land as a bond asset — must be satisfied for the relief to apply.