Conversion of a Trust Charge

Conversion of a Trust Charge into a share of the Property

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I have a Trust case that was established 20 odd years ago. The Trust asset initially was a charge over a residential property that the a beneficiary lived in.

At some point 10/12 years after the Trust was established the charge was converted so that the Trust owned a percentage of the property. The property had increased in value and I understand that the percentage share of the property that the Trust owns equates to the percentage value of the initial loan.   

The trust property has now been sold and PPR will be claimed on the gain. However, would the conversion of the loan to a share in the property have had tax consequences either at the time of conversion or now.

I should imagine the conversion of charges to part ownership of a property is a fairly common occurrence. Has anyone come across this?

 

 

 

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