Commentary

C1.206B Personal representatives—deeds of variation

Capital gains tax
Capital gains tax | Commentary

C1.206B Personal representatives—deeds of variation

Capital gains tax | Commentary

C1.206B Personal representatives—deeds of variation

Introduction

A 'variation' occurs where the persons who are entitled to benefit from the deceased estate agree between themselves to change the way it is to be distributed. A variation may apply to the terms of a Will, the rules under intestacy or the devolution of joint property. For both inheritance tax and capital gains tax, provided the relevant conditions are met, the legislation gives the variation retrospective effect, meaning that the variation is treated as if it were written into the Will at the date of death. The tax consequences that follow are in accordance with the beneficiary under the variation having received a direct bequest. The original intended beneficiary is deemed not to have made a disposal.1

For a detailed discussion of deeds of variation and other post-death rearrangements, see Division I4.4. The differences in the consequences of a deed of variation for capital gains tax and inheritance tax are discussed in I4.421.

Capital gains tax conditions

Any person or persons who would benefit under any of the dispositions of the property of which the deceased was competent to dispose (see C1.206) may vary the dispositions or disclaim the benefit of them by an instrument in writing. A variation or disclaimer can cover jointly held assets which pass on death to the surviving joint owner2. A variation or disclaimer may be made notwithstanding that the administration of the estate has been completed or that the property has already been distributed in accordance with the original

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