We have a client Trustee who would like to instruct us to transfer a property held in the name of Trustees back to the Settlor and then to charge to property in favour of the Trustees instead (as I understand it this is owing to the fact that property value has now exceeded the NRB).Our client is aware of the lifetime IHT issues here but we are worried about the SDLT implications of the transfer and subsequent charge over the property.
We have, in the same week, been instructed to transfer a trust property back to Settlor and charge it in favour of the Trustees in order to allow a Settlor to obtain an equity release mortgage (and therefore the new charge in favour of Trustees would need to be subject to the charge in favour of the equity release mortgagee).
Are charges such as these classed as consideration for the purposes of SDLT? Could anybody please point us in the right direction here?
Lambert Taylor and Gregory