SCHEDULE 7Alternative property finance relief
PART 4Exempt interest
Interest held by financial institution an exempt interest
21
An interest held by a financial institution as a result of the first transaction within the meaning of paragraph 2(a) or 7(a) is an exempt interest for the purposes of the tax.
22
That interest ceases to be an exempt interest if—
a
the lease or agreement mentioned in paragraph 2(b) or 7(b) ceases to have effect, or
b
the right under paragraph 2(c) or 7(c) ceases to have effect or becomes subject to a restriction.
23
Paragraph 21 does not apply if the first transaction is exempt from charge by virtue of schedule 10 (group relief) or 11 (reconstruction and acquisition reliefs).
24
Paragraph 21 does not make an interest exempt in respect of—
a
the first transaction itself, or
b
a third transaction or a further transaction within the meaning of paragraph 5 or 10.