73Alternative property finance: land sold to financial institution and re-sold to individual
(1)This section applies where arrangements are entered into between an individual and a financial institution under which—
(a)the institution—
(i)purchases a major interest in land (“the first transaction”), and
(ii)sells that interest to the individual (“the second transaction”), and
(b)the individual grants the institution a legal mortgage over that interest.
(2)The first transaction is exempt from charge if the vendor is—
(a)the individual concerned, or
(b)another financial institution by whom the interest was acquired under other arrangements of the kind mentioned in section 72(1) entered into between it and the individual.
(3)The second transaction is exempt from charge if the financial institution complies with the provisions of this Part relating to the first transaction (including the payment of any tax chargeable).
(4)This section does not apply if—
(a)the individual enters into the arrangements as trustee and any beneficiary of the trust is not an individual, or
(b)the individual enters into the arrangements as partner and any of the other partners is not an individual.
(5)In this section—
(a)“financial institution” has the same meaning as in section 72;
(b)“legal mortgage”—
(i)in relation to land in England or Wales, means a legal mortgage as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20);
(ii)in relation to land in Scotland, means a standard security;
(iii)in relation to land in Northern Ireland, means a mortgage by conveyance of a legal estate or by demise or sub-demise or a charge by way of legal mortgage.
(6)References in this section to an individual shall be read, in relation to times after the death of the individual concerned, as references to his personal representatives.