Readers’ forum: Life interest trust

Our client after a divorce in 2005 received a 60% share of the family house and a similar share in 60 acres of land which is contracted out. The remaining shares in the house and land were put into a life interest trust for their four adult children.

The family would now like to move the share of the house owned by the life interest trust into the name of the parent who owns the 60% share and move the land into the name of the life interest trust. Unfortunately the trust was created before the 2006 legislation was introduced so we do not believe holdover relief under TCGA 1992 s 260 will be available.

We are trying to determine whether exchange relief under TCGA 1992 s 248A would be available on the transactions. We are aware that the legislation talks about individuals but are...