Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 7 paragraph 19

Definitions for the anti-avoidance rules on alternative property finance

Schedule 7 paragraph 19 provides the key definitions used in the anti-avoidance provisions of paragraphs 17 and 18, which deny relief where arrangements exist to transfer control of the financial institution involved in an alternative finance transaction.

• Alternative finance arrangements are the specific Sharia-compliant or equivalent property finance structures described in paragraphs 2 and 7 of Schedule 7 (the sale-and-leaseback model and the shared ownership model).
• Connected arrangements are any arrangements entered into in connection with the making of the alternative finance arrangements, including arrangements that involve one or more of the parties to those finance arrangements.
• The relevant financial institution is the financial institution that enters into the alternative finance arrangements with the individual or other purchaser.
• These definitions are essential for determining whether the anti-avoidance rules in paragraphs 17 and 18 apply to deny LBTT relief on a particular transaction.