SCHEDULE 8Relief for alternative finance investment bonds
PART 5Supplementary
Substitution of asset
I121
1
This paragraphs applies if—
a
conditions A to C and G are met in relation to an interest in land (“the original land”),
b
Q ceases to hold the original land as a bond asset (and, accordingly, transfers it to P) before the termination of the alternative finance investment bond,
c
P and Q enter into further arrangements falling within paragraph 8 relating to an interest in other land (“the replacement land”), and
d
the value of the interest in the replacement land at the time that it is transferred from P to Q is greater than or equal to the value of the interest in the original land at the time of the first transaction.
2
Paragraphs 15 to 20 apply—
a
in relation to the original land with the modification set out in sub-paragraph (3), and
b
in relation to the replacement land with the modifications set out in sub-paragraph (4).
3
Condition F does not need to be met in relation to the original land if conditions A, B, C, F and G (as modified by sub-paragraph (4)) are met in relation to the replacement land.
4
In relation to the replacement land—
a
condition E applies as if the reference to the interest in the land were a reference to the interest in the original land, and
b
condition G apples as if the reference in paragraph 14(1)(b) to the first transaction were a reference to the first transaction relating to the original land.
5
If the replacement land is in Scotland, the original land ceases to be subject to the security registered in pursuance of condition D when—
a
Q provides the Tax Authority with the prescribed evidence that condition G is met in relation to the original land, and
b
condition D is met in relation to the replacement land.
6
If the replacement land is not in Scotland, the original land ceases to be subject to the security registered in pursuance of condition D when Q provides the Tax Authority with the prescribed evidence that—
a
condition G is met in relation to the original land, and
b
each of conditions A to C is met in relation to the replacement land.