SCHEDULE 61Alternative finance investment bonds
Part 3Transactions relating to underlying assets consisting of land
Supplementary
Substitution of asset
18
(1)
This paragraph 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 5(2) 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 6 to 17 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 applies as if the reference in paragraph 5(11)(b) to the first transaction were a reference to the first transaction relating to the original land.
(5)
If the replacement land is in F1England and Wales or Northern Ireland, the original land ceases to be subject to the charge F2... registered in pursuance of condition D when—
(a)
Q provides HMRC 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 F1England and Wales or Northern Ireland, the original land ceases to be subject to the charge F2... registered in pursuance of condition D when Q provides HMRC 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.
(7)
This paragraph also applies where the replacement land is replaced by further replacement land; and in that event—
(a)
the references to the original land (except those in sub-paragraph (4)) are to be read as references to the replacement land, and
(b)
the references to the replacement land are to be read as references to the further replacement land.