Section 472 — Income Tax Act 2007: Settlor where property becomes settled because of variation of will etc

Settlor where property becomes settled because of variation of will etc 472 1 This section applies if—

a a disposition of property following a person's death is varied, and b section 62(6) of TCGA 1992 applies in relation to the variation.

2 If property becomes settled property because of the variation (and would not, but for the variation, have become settled property), a person within subsection (3) is treated for the purposes of the Income Tax Acts (except where the context otherwise requires)—

a as having made the settlement, and b as having provided the property for the purposes of the settlement.

3 The persons within this subsection are—

a a person who immediately before the variation was entitled to the property, or to property from which it derived, absolutely as legatee, b a person who immediately before the variation would have been so entitled if that person had not been an infant or otherwise lacking legal capacity, c a person who, but for the variation, would have become so entitled, and d a person who, but for the variation, would have become so entitled if that person had not been an infant or otherwise lacking legal capacity.

4 For the purposes of subsection (3)—

a “ legatee ” includes a person taking property—

i under a testamentary disposition or on an intestacy or partial intestacy, whether beneficially or as trustee, or ii under a donatio mortis causa, and b a person who is a legatee as a result of paragraph (a)(ii) is treated as acquiring the property when the donor dies.

5 For the purposes of subsection (4)(a) property taken under a testamentary disposition or on an intestacy or partial intestacy includes any property appropriated by the personal representatives in or towards satisfaction of—

a a pecuniary legacy, or b any other interest or share in the property devolving under the disposition or intestacy.