Part 9

Special rules about settlements and trustees
Chapter 2

General provision about settlements and trustees

Settlors

Deceased person as settlor where variation of will etc
473
1
This section applies if—
a
a disposition of property following the death of a person (“D”) is varied, and
b
section 62(6) of TCGA 1992 applies in relation to the variation.
2
If—
a
property would have become comprised in a settlement within subsection (3), but
b
as a result of the variation, the property, or property derived from it, becomes comprised in another settlement,
D is treated for the purposes of the Income Tax Acts (except where the context otherwise requires) as having made the other settlement.
3
A settlement is within this subsection if—
a
it arose on D's death (whether by D's will or on D's intestacy or in any other way), or
b
it was in existence immediately before D's death (whether or not D was a settlor in relation to it).
4
If—
a
immediately before the variation property is comprised in a settlement and is property of which D is a settlor, and
b
immediately after the variation the property, or property derived from it, becomes comprised in another settlement,
D is treated for the purposes of the Income Tax Acts (except where the context otherwise requires) as having made the other settlement.
5
A settlement treated as made by D as a result of this section is treated for the purposes of the Income Tax Acts as made by D immediately before D's death.
6
But subsection (5) does not apply in relation to a settlement which arose on D's death.
Pt. 9 Ch. 2 applied (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 1169(1), 1184(1) (with Sch. 2)