deed of variation for inheritance who pays the tax

beneficiary passed on property inheritance 23 months after dod so who pays inc tax and cap gain tax

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Beneficiary of a will passed on his share of father's estate via a deed of variation, executed 23 months after date of death.  the assets are residential property. there is income tax to be calculated and capital gains on sale of property - are both of these taxed on original beneficiary until date of deed of variation, and thereafter taxed on the new beneficiary?

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By Tax Dragon
14th Aug 2018 17:25

Has the estate been administered?

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paddle steamer
By DJKL
14th Aug 2018 17:30

Does the tax not possibly fall on the executors of the estate?

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By IHS
14th Aug 2018 17:41

Because the will was simple and the beneficiaries received an equal share, the income is immediately being taxed on the beneficiaries with HMRC blessing.

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Replying to IHS:
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By Tax Dragon
14th Aug 2018 17:50

With HMRC blessing because the income is theirs because the estate has been administered, or with HMRC blessing despite that not being the case?

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By Tax Dragon
14th Aug 2018 17:54

Your question (and responses) are really badly written, but I think the answer is probably "yes". A DoV does not rewrite history. Tax elections may or may not have been included in the DoV. Such elections might effect future tax. I don't see them changing past tax.

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By chicken farmer
15th Aug 2018 08:46

You haven't told us when the property was sold nor in whose favour the original beneficiary renounced his inheritance.

A deed of variation has no effect for income tax and so settlement provisions could come into play if the new beneficiaries are minor children of original beneficiary.

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