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HMRC internal manual

Capital Gains Manual

Death and Personal Representatives: Variation of the devolution of an estate: Instruments of variation: CGT effects: if conditions satisfied

TCGA92/S62 (6) - (7)

If the conditions set out in CG31650 are satisfied the variation will be treated for Capital Gains Tax purposes

  • as not being a disposal

and

  • as if the variation had been effected by the deceased.

In other words the effects of the variation are treated as being retrospective to the date of death for most purposes of CGT.

  • If the assets are vested in personal representatives at the time the deed is executed, there will be no chargeable occasion for them either on the execution of the deed or when they vest assets in the assignee.
  • Whether or not the assets have already been vested in the legatee, there will be no chargeable occasion for the legatee when the deed is executed.
  • If the assets have vested in the legatee and the legatee has disposed of the assets before the deed is executed, then the disposal is no longer treated as an occasion of charge for the legatee. Instead it is treated as an occasion of charge for the assignee.