The commentary below considers the capital gains tax treatment for the legatees (ie persons who receive a legacy on the death of another person) where there is a variation of the distributions from the deceased's estate. For an overview of the taxation of capital gains generally, see C1.101.
For the capital gains tax treatment for the legatees generally, see C1.206A.
For the capital gains tax treatment of personal representatives, see C1.206.
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
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