S248A TCGA extends rollover relief to swaps of jointly owned interests in land where five conditions are met.
Condition D requires that, after the swaps, each participant becomes "the sole owner of part of the holding" or, where there's more than one holding, "the sole owner of one or more of the holdings".
I've dealt with cases where 50% interests were swapped and the relief was relatively straightforward, but what happens in a case where there are two partnerships, each with the same three partners, but only two of them are involved in the land exchanges? Partner A exchanges his interest in land used in Partnership 1 for Partner B's interest in land used in Partnership 2, but Partner C's interests in land in both partnerships remain unchanged. Is Condition D satisfied? Partner A will have a bigger joint holding of the Partnership 2 land and Partner B likewise in Partnership 1, but neither will be a "sole owner" because of Partner C's continuing interests.
As I read the legislation, I struggle to see how Condition D is met in that case, but I feel I must be missing something because I can't see why, in principle, rollover relief shouldn't apply to an exchange whereby a partner with two smaller joint holdings arranges to become a partner with one larger joint holding.
Grateful to be told what I've misinterpreted or overlooked!