Taxation of Chargeable Gains Act 1992 section 68C

Variation of will or intestacy, etc.: identification of settlor

Section 68C identifies who is treated as the settlor for capital gains tax purposes when a post-death variation (executed after 5 April 2006) redirects inherited property into a trust settlement.

• Where a variation places property into a trust that would not otherwise have existed, the person who was (or would have been) entitled to that property as a legatee is treated as the settlor of that trust.
• If the variation redirects property from one settlement into a different settlement, the deceased person is treated as having made the other settlement.
• Where the deceased was already a settlor of property that, following the variation, moves into a different settlement, the deceased is again treated as having made that other settlement.
• A deceased person treated as having made a settlement under these rules is deemed to have made it immediately before death, except where the settlement itself arose on death.