| 释义 |
deed of variation
(deed of family arrangement) A deed by which the beneficiary under a will or an intestacy redirects the gift to some other person (who may or may not be a beneficiary of the estate). Provided this is done within two years of the deceased’s death and statutory requirements are complied with, the redirection is not treated as a gift for inheritance tax or capital gains tax purposes by the beneficiary giving up his interest (Inheritance Tax Act 1984 s 142; Taxation of Chargeable Gains Act 1992 s 62 (6)). In Soutter’s Executry v IRC [2002] STC (SCD) 385 executors attempted to vary a trust that arose at the death but ceased before the date of the deed of variation: it was held that this was not a valid deed of variation. A deed of variation is not effective for tax purposes if it is made for consideration other than consideration consisting of another variation (Inheritance Tax Act s 142(3); Taxation of Chargeable Gains Act 1992 s 62(8)). In Lau (Executor of Lau (deceased)) v Revenue and Customs Commissioners [2009] STC (SOD) 352 a variation was ineffective under s 142(3) because the beneficiary making the variation received a payment of £1 million from another beneficiary, which was regarded as consideration for the variation. See also disclaimer. |