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Tax Law
Tax & Planning
CPD Points:
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Regulated by the Solicitors Regulation Authority:
Listen and pass the quiz: Gain 1 CPD point (60 minutes)
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Regulated by the Bar Standards Board:
Listen and pass the quiz: Gain 1 accredited CPD point (60 minutes)

Regulated by ILEX:
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  • FREE
30 minutes of audio
(+ optional 5 minute online quiz)
Plays on Computer:
Yes Downloadable as MP3:    Yes
Course Aims:

The aim of this podcast is to explain what how a post-death variation of an estate by a beneficiary impacts can retrospectively mitigate the estate's liability pay to Inheritance Tax (IHT) and Capital Gains Tax (CGT). It will look at the statutory requirements that must be satisfied for retrospective treatment, which assets and interests qualify and how the regimes differ for IHT and CGT. Attention will also be given as to the effect to tax in redirecting an interest into a trust and the continuing relevance of establishing a nil rate band trust.

After completing the course you will:
  • Understand how a post death variation can be used to mitigate the charge to tax as if the deceased had made the variation himself;
  • Know what requirements must be satisfied to qualify for retrospective relief;
  • Know who can benefit from a variation and how many variations can be made;
  • Be aware of the different treatment to tax between IHT and CGT applying to different classes of asset or interest subject to a variation or redirection;
  • Understand the effect to tax of a variation that redirects assets or interests into trust;
  • Understand the effect of a variation directing a nil rate band into trust and the continuing relevance of such a move following the introduction of a transferable nil rate;
  • Be aware that the considerations in choosing to vary a trust may be different as between CGT and IHT.
Complex Difficulty: 4 of 5
Legal Principles
Sources and References:
  • Inheritance Tax Act 1984 s5, s142;
  • Taxation of Chargable Gains Act 1992 s.62(6)-10;
  • Variation of Trusts Act 1958;
  • Law of Property Act 1925 s136;
  • Lau v HMRC [2009] UKVAT SPC00740;
  • Saunders v Vautier (1841) 4 Beav 115.

In this podcast James Sheedy discusses the requirements to qualify for the retrospective treatment to tax (for both IHT and CHT) on a variation of an estate after death. It also examines the scope of the statutory provisions for variations and issues practitioners should remember when considering a variation.

Podcast added: 13/10/10

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