Valid from 06/04/2006
[F1685DVariation of will or intestacy, etc: identification of settlorU.K.
(1)This section applies where—
(a)a disposition of property following a person's death is varied, and
(b)section 62(6) of the 1992 Act applies in respect of the variation.
(2)Where property becomes settled property in consequence of the variation (and would not, but for the variation, have become settled property), a person mentioned in subsection (3) shall be treated for the purposes of the Tax Acts, except where the context otherwise requires—
(a)as having made the settlement, and
(b)as having provided the property for the purposes of the settlement.
(3)Those persons are—
(a)a person who immediately before the variation was entitled to the property, or to property from which it derives, absolutely as legatee,
(b)a person who would have become entitled to the property, or to property from which it derives, absolutely as legatee but for the variation,
(c)a person who immediately before the variation would have been entitled to the property, or to property from which it derives, absolutely as legatee but for being an infant or other person under a disability, and
(d)a person who would, but for the variation, have become entitled to the property, or to property from which it derives, absolutely as legatee if he had not been an infant or other person under a disability.
(4)For the purposes of this section—
(a)“legatee” includes any person taking under a testamentary disposition or on an intestacy or partial intestacy, whether he takes beneficially or as trustee,
(b)property taken under a testamentary disposition or on an intestacy or partial intestacy includes any property appropriated by the personal representatives in or towards satisfaction of a pecuniary legacy or any other interest or share in the property devolving under the disposition or intestacy, and
(c)a person taking under a donatio mortis causa shall be treated as a legatee and his acquisition as made at the time of the donor's death.
(5)Where—
(a)property would have become comprised in a settlement—
(i)which arose on the deceased person's death (whether in accordance with his will, on his intestacy or otherwise, or
(ii)which was already in existence on the deceased person's death (whether or not the deceased person was a settlor in relation to that settlement), but
(b)in consequence of the variation the property, or property derived from it, becomes comprised in another settlement,
the deceased person shall be treated for the purposes of the Tax Acts, except where the context otherwise requires, as having made the other settlement.
(6)Where—
(a)immediately before the variation property is comprised in a settlement and is property of which the deceased person is a settlor, and
(b)immediately after the variation the property, or property derived from it, becomes comprised in another settlement,
the deceased person shall be treated for the purposes of the Tax Acts, except where the context otherwise requires, as having made the other settlement.
(7)If a person is treated as having made a settlement under subsection (5) or (6), for the purposes of the Tax Acts he shall be treated as having made the settlement immediately before his death.
(8)But subsection (7) does not apply in relation to a settlement which arose on the person's death.]
Textual Amendments
F1Ss. 685A-685G inserted (coming into force and with effect in accordance with Sch. 13 para. 1(2)-(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 13 para. 1(1)