SCHEDULES

SCHEDULE 61Alternative finance investment bonds

Part 3Transactions relating to underlying assets consisting of land

Taxation of capital gains

Relief from taxation of capital gains: first transaction

10

1

This paragraph applies if each of conditions A to C is met before the end of the period of 30 days beginning with the effective date of the first transaction.

2

That transaction is not to be regarded for the purposes of TCGA 1992 as an acquisition by Q or a disposal by P.

3

If condition C is met by virtue of Q and P having entered into a leaseback agreement, the granting of the lease or sub-lease is not to be regarded for the purposes of TCGA 1992 as an acquisition by P or a disposal by Q.

4

Sub-paragraphs (2) and (3) are subject to paragraph 11 (treatment of transactions where any of conditions D to G is not met).

5

Where the interest in the land is replaced as the bond asset by an interest in other land, this paragraph is subject to paragraph 18.

6

This paragraph is also subject to paragraph 20.

11

1

This paragraph applies if—

a

the interest in the land is transferred by Q to P without conditions E and F having been met,

b

the period mentioned in paragraph 5(11)(b) expires without each of those conditions having been met, or

c

at any time it becomes apparent for any other reason that any of conditions E to G cannot or will not be met.

2

This paragraph also applies where (in the case of an interest in land in F4England F1... or Northern Ireland) condition D is not met.

3

Where this paragraph applies, paragraph 10(2) and (3) (disregard of transactions for purposes of TCGA 1992) do not apply.

4

Where, by virtue of sub-paragraph (3), any chargeable gain or loss is treated as accruing to a person, that gain or loss is to be treated as accruing—

a

in the case mentioned in sub-paragraph (1)(a), immediately before the transfer from Q to P,

b

in any case mentioned in paragraph (b) or (c) of sub-paragraph (1), at the time mentioned in that paragraph, and

c

in the case mentioned in sub-paragraph (2), at the end of the period mentioned in paragraph 5(6).

Relief from taxation of capital gains: second transaction

12

1

The second transaction is not to be regarded for the purposes of TCGA 1992 as an acquisition by P or a disposal by Q if—

a

each of conditions A to C and E to G is met, and

b

in the case of an interest in land in F3England F2... or Northern Ireland, condition D is met.

2

Where the interest in the land is replaced as the bond asset by an interest in other land, this paragraph is subject to paragraph 18.

3

This paragraph is also subject to paragraph 20.