Commentary

I4.412 Deeds of variation — IHT statements

IHT, trusts and estates

I4.412 Deeds of variation — IHT statements

I4.412 Deeds of variation — IHT statements

The statement of intention that IHTA 1984, s 142(1) applies must be in the instrument of variation, and it is almost certain that this means in the instrument at the time when it is executed by all parties.

There is no set wording for the statement, although something similar to the following will suffice:

'By their execution of this Deed the parties hereto hereby declare that they intend the provisions of section 142(1) Inheritance Tax Act 1984 and section 62(6) Taxation of Chargeable Gains Act 1992 shall apply to this Deed so that the variation of the disposition of the estate of the Testator effected by this Deed shall be deemed to be a variation effected by the Testator.'

For further information on the effects of the TCGA 1992 statement for CGT purposes see I4.421.

It is submitted that once an instrument of variation has been made without a statement that s 142(1) is intended to apply, it is too late to add one, and it will probably not be feasible to make a new instrument including the statement because the instrument which has already been made without the required statement will already have been

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