A loan or a deposit, from a tenant or an assignee, is treated as consideration other than rent (in the same manner as a premium) for LBTT purposes in respect of arrangements made in connection with the grant or assignation of a lease in which:

the tenant or assignee, or any person connected with or acting on behalf of the tenant or assignee, pays a deposit, or makes a loan to any person and

the repayment of all or part of the deposit or loan is contingent on anything done, or omitted to be done by the tenant or assignee, or on the death of the tenant or assignee

(Sch. 19, para. 17(1), (2)).

Any repayment is disregarded for the purpose of calculating LBTT payable.

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