CG31660 - Death and Personal Representatives: Variation of the devolution of an estate: Instruments of variation: CGT effects: if conditions not satisfied

If the conditions set out in CG31650 above are not satisfied then the variation will not be treated as retrospective to the date of death. The treatment applying will depend on whether the assets have vested in the legatee before the deed is executed or whether they remain vested in the personal representatives.

• If the assets have vested and have not been disposed of by the legatee the non-retrospective instrument of variation will operate as a disposal by the legatee of his or her interest in the assets. This disposal should be dealt with on precisely the same lines as any other disposal by way of gift. As regards liaison with the legatee’s tax office see CG31920.
• If the assets have vested but have been disposed of by the legatee before the deed is executed, the disposal by the legatee remains a chargeable occasion for that legatee. When the deed is executed there is no further chargeable occasion as regards those assets, either for the legatee or the assignee, but there may be a chargeable occasion if other assets pass.
• If the non-retrospective instrument of variation is executed whilst the assets remain vested in the personal representatives see CG31940+.