A. The relevant legislation refers to “dispositions whether effected by will, under the law relating to intestacy or otherwise”. HM Revenue & Customs take the view that the words “or otherwise” have the effect of including in the variation rules the automatic inheritance of a deceased owner’s interest in a jointly held asset. It therefore follows that a variation by the surviving joint owner is not a transfer of value for inheritance tax purposes. Similar rules apply for capital gains tax purposes.
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