Part 2 - The reliefs
Land sold to financial institution and leased to a person
303.The provisions at paragraph 2 cover situations where a financial institution:
purchases a major interest in land from a person (“P”) or from another financial institution which has purchased the interests under the types of arrangements discussed in paragraph 2(1) entered into between it and P (“the first transaction”);
leases the land back to P; and
enters into an agreement under which P has a right to require that the financial institution transfers the major interest back to P. Subject to the conditions set out in the paragraph, those transactions are relieved from LTT.
304.Relief is also available where a financial institution purchases a major interest from another financial institution that has entered into such arrangements with a person.
Land sold to financial institution and re-sold to a person
305.The provisions at paragraph 3 cover situations where:
a financial institution purchases a major interest in land (“the first transaction”);
sells it to a person (“P”); and;
in return, P grants the financial institution a legal mortgage over the land.
306.Subject to the conditions set out in the paragraph, the institution’s purchase is relieved from LTT if the major interest was purchased from P or another financial institution which has purchased a major interest under arrangements mentioned in paragraph 2(1) between it and P.
307.The sale by the financial institution is relieved from tax if the conditions in paragraph 3(3) are complied with.