Part 9Special rules about settlements and trustees
Chapter 2General provision about settlements and trustees
Settlors
472Settlor where property becomes settled because of variation of will etc
1
This section applies if—
a
a disposition of property following a person’s death is varied, and
b
section 62(6) of TCGA 1992 applies in relation to the variation.
2
If property becomes settled property because of the variation (and would not, but for the variation, have become settled property), a person within subsection (3) is treated for the purposes of the Income 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
The persons within this subsection are—
a
a person who immediately before the variation was entitled to the property, or to property from which it derived, absolutely as legatee,
b
a person who immediately before the variation would have been so entitled if that person had not been an infant or otherwise lacking legal capacity,
c
a person who, but for the variation, would have become so entitled, and
d
a person who, but for the variation, would have become so entitled if that person had not been an infant or otherwise lacking legal capacity.
4
For the purposes of subsection (3)—
a
“legatee” includes a person taking property—
i
under a testamentary disposition or on an intestacy or partial intestacy, whether beneficially or as trustee, or
ii
under a donatio mortis causa, and
b
a person who is a legatee as a result of paragraph (a)(ii) is treated as acquiring the property when the donor dies.
5
For the purposes of subsection (4)(a) 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
a pecuniary legacy, or
b
any other interest or share in the property devolving under the disposition or intestacy.