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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Non-retrospective variations: vested assets

If assets which are the subject of a non-retrospective variation had vested in thelegatees before the non-retrospective variation occurred the possibilities are that beforethe non- retrospective variation occurred

  • the asset(s) had been sold. If so the gain remains chargeable on the legatee and only the proceeds pass to the assignee.


  • the asset(s) had not been sold. If so the non-retrospective variation is a disposal of those assets by the legatee to the assignee. This disposal occurs on the date the variation becomes effective. For disposals made otherwise than by way of a bargain at arm’s length the disposal is deemed to be at market value on that date. As for any other disposal made otherwise than by way of a bargain at arm’s length, if the disposal occurred before 14 March 1989 an election for gifts holdover relief under FA80/S79 can be made, see CG66450+.