Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Sch 8 para 6

Reallocation of trust property and beneficiary consent

Schedule 8 paragraph 6 confirms that when trustees reallocate trust property among beneficiaries, a beneficiary's consent to giving up an interest in one property in exchange for an interest in another does not create chargeable consideration for the acquisition.

• Trustees may reallocate trust property so that a beneficiary gains an interest in some property while losing an interest in other property.
• The beneficiary may consent to giving up their interest in the property they are ceasing to hold.
• That consent, on its own, does not count as chargeable consideration for the property interest the beneficiary acquires.
• This means the reallocation is not treated as a transaction with a purchase price simply because the beneficiary agreed to the swap.