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Similarities with inheritance tax

The CGT legislation provides similar, though not identical, provisions to IHTA 1984, s 142 for the purposes of CGT.

TCGA 1992, s 62(6) (see C1.206B) provides that where within the period of two years after a person's death any of the dispositions of the property of which he was competent to dispose¹ are varied (or disclaimed) by an instrument in writing made by the persons or any of the persons who benefit or would benefit under the dispositions:

1. Ìý

   •ÌýÌýÌýÌý the variation or disclaimer shall not constitute a disposal for the purposes of TCGA 1992 (so there can be no chargeable gain and accordingly no CGT charge), and

2. Ìý

   •ÌýÌýÌýÌý TCGA 1992, s 62 shall apply as if the variation had been effected by the deceased or, as the case may be, the disclaimed benefit had never been conferred

In common with the IHT provisions an instrument must contain a statement by the persons making the instrument to the