Good morning,
I am dealing with a case where a trust has arisen from a will. Two of the original will beneficiaries have completed a Deed of Variation to diver their inheritance to other other beneficiaries. Is the deceased still classed as the settlor of the will or would ther settlors be the people who completed the Deed of Variation?
For income tax and CGT if the DoV creates a trust the settlor is the person making the Variation (if the Variation alters an existing will trust the settlor is the deceased.
For IHT it is the deceased who is treated as having effected the redirection.
Malcolm Finney
@MalcFinney isn’t s.62(6) a complete read back for CGT even when creating trusts?
(it may now be fairly academic since settlor attribution was abolished).
Where a reading back statement is made under which TCGA 1992 s62 is to apply, the Variation is treated as made by the deceased [s62(6)].
However, under s68C where property is settled under the Variation, for CGT the person making the Variation is treated as the settlor. On the other hand, if property was settled under the will but under the Variation it becomes comprised in another settlement the deceased is treated as the settlor.
Or have I misunderstood your point Andrew?
Malcolm Finney
If the DOV is transferred into an existing FIC and that settlor is a minority shareholder of that company. Does the relationship still continue if that FIC has capital grown shares with a discretionary trust?
You’ve both understood and answered it 
Hi @Stephanie
I suspect this might be TRS related? If so, in addition to Malcolm’s guidance, you should find the examples at the end of the following link helpful -
Yes, it is TRS related. Thank you, that is very helpful.