Section 473 — Income Tax Act 2007: Deceased person as settlor where variation of will etc

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.