Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Ineffective variation

29 October 2007
Categories: Tax cases
Wells and another (personal representatives of Glowacki deceased) (SpC 631)

Mrs G died in March 2004. She left a pecuniary legacy of £25 000 to her sister and the rest of the estate to her husband. Her husband died in June 2004.

In December 2004 the beneficiaries purported to execute a deed of variation clause 1 of which was a lifetime gift of the couple's house to her sister before the deemed transfer of value on her death and clause 2(3) made a pecuniary legacy of £230 000 to nieces and nephews.

HMRC issued a determination under IHTA 1984 s 142 agreeing that the deed was effective and that the benefit of the nil-rate band was to be set against the property.

The personal representatives argued that the house was then no longer part of the estate because IHTA 1984 s 17(a) stated with reference to 'Changes in distribution of deceased's estate etc' ...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon