SCHEDULE 11RELIEF FOR ALTERNATIVE FINANCE INVESTMENT BONDS

PART 3CONDITIONS FOR OPERATION OF RELIEFS ETC.

Condition 3

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1

Condition 3 is that, for the purpose of generating income or gains for the alternative finance investment bond—

a

B and A enter into a leaseback agreement, or

b

such other condition or conditions as may be prescribed is or are met.

2

For the purposes of condition 3, B and A enter into a leaseback agreement if B grants to A, out of the interest transferred to B—

a

a lease (if the interest transferred is freehold), or

b

a sub-lease (if the interest transferred is leasehold).