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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Variations: instruments of variation: legal effects

 

For the purposes of general law:

  • if an instrument of variation is executed whilst the assets involved are still vested in the personal representatives, then when the assets vest they pass to the person to whom they are assigned (the assignee) by the instrument of variation
  • if an instrument of variation is executed

    • after the assets have vested in the legatee

and

* before the assets have been disposed of by the legatee,

 

the assets pass from that legatee to the assignee in precisely the same way that theywould pass if the legatee had made a gift to the assignee on the date of the variation

  • if an instrument of variation is executed

 

* after the assets have vested in the legatee;

but

* after the assets have been disposed of by the legatee

then, subject to CG31601, the disposal proceeds from the disposal of the assets pass from the legatee to the assignee.