SCHEDULE 8Relief for alternative finance investment bonds

PART 3General conditions for operation of reliefs etc.

Condition C

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1

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

a

Q and P enter into a leaseback agreement, or

b

such other condition or conditions as may be specified in regulations made by the Scottish Ministers is or are met.

2

For the purposes of condition C, Q and P enter into a leaseback agreement if Q grants to P, out of the interest transferred to Q—

a

a lease (if the interest transferred is the interest of the owner), or

b

a sub-lease (if the interest transferred is the tenant's right over or interest in land subject to a lease).