SCHEDULE 11RELIEF FOR ALTERNATIVE FINANCE INVESTMENT BONDS
PART 5SUPPLEMENTARY
18Replacement of asset
1
Paragraphs 13 to 16 apply with the modifications set out in sub-paragraph (2) or (as the case may be) (3) if—
a
conditions 1 to 3 and 7 are met in relation to an interest in land (“the original land”),
b
B ceases to hold the original land as a bond asset (and accordingly, transfers it to A) before the termination of the alternative finance investment bond,
c
A and B enter into further arrangements satisfying condition 1 relating to an interest in other land (“the replacement land”), and
d
the value of the interest in the replacement land at the time it is transferred from A to B is greater than or equal to the market value of the interest in the original land on the effective date of the first transaction relating to the original land.
2
In relation to the original land, condition 6 does not need to be met if conditions 1, 2, 3, 6 and 7 (as modified by sub-paragraph (3)) are met in relation to the replacement land.
3
In relation to the replacement land—
a
condition 5 applies as if the reference to the interest in land were a reference to the interest in the original land, and
b
condition 7 applies as if the reference in paragraph 12(b) to the first transaction were a reference to the first transaction relating to the original land.
4
If the replacement land is in Wales, the original land ceases to be subject to the charge registered in pursuance of condition 4 when—
a
B provides WRA with the prescribed evidence that condition 7 is met in relation to the original land, and
b
condition 4 is met in relation to the replacement land.
5
If the replacement land is not in Wales, the original land ceases to be subject to the charge registered in pursuance of condition 4 when B provides WRA with the prescribed evidence that—
a
condition 7 is met in relation to the original land, and
b
each of conditions 1 to 3 is met in relation to the replacement land.
6
This paragraph also applies where the replacement land is replaced by further replacement land; and in that event—
a
references to the original land (except those in sub-paragraph (3)) are to be read as references to the replacement land, and
b
references to the replacement land are to be read as references to the further replacement land.