Malcolm Finney explains what ‘reading-back’ is and why it is relevant.
‘Reading back’ is a colloquial expression. The concept of reading-back is a concept applicable to the execution of deeds of variation (DoV) satisfying the provisions of IHTA 1984, s 142 and TCGA 1992, s 62(6) (but has no application to disclaimers). It is intended to convey that the terms of the DoV are to be read back into the deceased’s will; in essence, a ‘tax fiction’ is created.
DoVs are used by beneficiaries to redirect their inheritances to another person (individual, trust or company) for various reasons.
For reading back to occur, the DoV must contain an explicit statement to the effect that the provisions of IHTA 1984, s 142(1) or TCGA 1992, s 62(6) are to apply. Without such explicit provision in the DoV, neither IHTA 1984, s 142 nor TCGA 1992, s 62(6) will apply to the redirection and no
