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
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
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.