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DEED OF VARIATION

Instrument Of Variation  ·  IHTA 1984 S.142  ·  TCGA 1992 S.62(6) ·  England And Wales

THIS DEED OF VARIATION is made by James Robert Sinclair of 8 Cavendish Place, London, SW1A 1PB (being the Son of the Deceased) in relation to the estate of the late Eleanor Margaret Sinclair, who died on 2025-11-14, late of 12 Rosemary Lane, Bath, BA1 2QN, having executed a Will dated 2021-06-01. The Personal Representatives of the estate are James Robert Sinclair and Margaret Anne Sinclair. This deed is executed within two (2) years of the death of the Deceased pursuant to section 142 of the Inheritance Tax Act 1984 and section 62 of the Taxation of Chargeable Gains Act 1992, and is executed as a deed under section 1 of the Law of Property (Miscellaneous Provisions) Act 1989.

(A) The Deceased died on 2025-11-14, late of 12 Rosemary Lane, Bath, BA1 2QN. (B) The Deceased left a Will dated 2021-06-01. (C) A Grant of Probate was obtained on 2026-01-20. (D) The Varying Beneficiary is entitled under the estate of the Deceased to the following interest (the "Original Entitlement"): A pecuniary legacy of fifty thousand pounds (50,000 GBP) under clause 4 of the Will. (E) The Varying Beneficiary wishes to redirect the gift to a new beneficiary on the terms set out in this deed.

The Varying Beneficiary, in exercise of the rights conferred on them by section 142 of the Inheritance Tax Act 1984 and section 62 of the Taxation of Chargeable Gains Act 1992, hereby varies the dispositions of the estate of the Deceased under the Will as follows: The said legacy of 50,000 GBP, which would otherwise have been paid to the Varying Beneficiary under clause 4 of the Will, shall instead be paid to the National Trust for Places of Historic Interest or Natural Beauty absolutely, for the general purposes of the Trust. The new beneficiary (the "New Beneficiary") is National Trust for Places of Historic Interest or Natural Beauty of Heelis, Kemble Drive, Swindon, SN2 2NA (Registered charity no. 205846). The approximate value of the entitlement being varied (for IHT and CGT reading-back purposes) is 50,000 GBP. The estate shall be administered and distributed as if the Deceased had made the disposition effected by this deed in the Will.

The Varying Beneficiary confirms that no consideration in money or money’s worth, other than consideration consisting of the making of another variation or disclaimer to which section 142(1) of the Inheritance Tax Act 1984 or section 62(6) of the Taxation of Chargeable Gains Act 1992 applies, has been given for the making of this variation. Accordingly, the exclusions in section 142(3) of the Inheritance Tax Act 1984 and section 62(8) of the Taxation of Chargeable Gains Act 1992 do not apply. This deed is made gratuitously (see Crowden v Aldridge [1993] 1 WLR 433).

The parties confirm that this deed is executed within the period of two (2) years beginning with the Deceased’s death as required by section 142(1)(a) of the Inheritance Tax Act 1984 and section 62(6)(a) of the Taxation of Chargeable Gains Act 1992. No previous instrument of variation or disclaimer has been made in respect of the Original Entitlement that would render this variation ineffective for IHT or CGT reading-back purposes under section 142(4) IHTA 1984 or section 62(7) TCGA 1992.

The parties hereby elect, in accordance with section 142(2) of the Inheritance Tax Act 1984, that the provisions of section 142(1) of that Act shall apply to this variation, with the intended effect that, for inheritance tax purposes, this variation shall be read back and treated as if the Deceased had made the disposition effected by this deed in the Will. This election is included in the instrument itself, as required by statute. The variation does not increase the inheritance tax payable on the estate; accordingly, the joinder of the Personal Representatives is not required under section 142(2A) of the Inheritance Tax Act 1984.

The parties hereby elect, in accordance with section 62(7) of the Taxation of Chargeable Gains Act 1992, that the provisions of section 62(6) of that Act shall apply to this variation. The intended effect is that, for capital gains tax purposes, the variation shall not constitute a disposal by the Varying Beneficiary, and the person taking under this variation shall be treated as having acquired the relevant assets on the date of death at their probate value. This election is included in the instrument itself as required by section 62(7) TCGA 1992.

Where this variation alters the inheritance tax chargeable, the Varying Beneficiary (and, where required, the Personal Representatives) shall send a copy of this instrument to HM Revenue and Customs within six (6) months of the date of this deed, accompanied by such particulars as HMRC may require (IHTA 1984 s.218A and HMRC’s Instrument of Variation Checklist, IOV2). A copy of this deed shall also be supplied on request in connection with any capital gains tax return.

For the avoidance of doubt, the Varying Beneficiary derives no benefit, directly or indirectly, from the property comprised in the Original Entitlement by reason of this variation. Nothing in this deed is intended to operate so as to confer any benefit on the Varying Beneficiary from the property varied or disclaimed (compare HMRC’s IOV2 guidance and the requirement that a variation be gratuitous). This clause does not preclude the Varying Beneficiary benefiting under a discretionary trust of which they are a member of the class, provided the reading-back conditions in IHTA 1984 s.142 remain satisfied.

Nothing in this deed is intended to prejudice or extinguish any claim which any person may have against the estate under the Inheritance (Provision for Family and Dependants) Act 1975. Any such claim remains subject to the statutory six-month time limit running from the date of the first grant of representation (section 4 of that Act).

If any provision of this deed is held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions shall continue in full force and effect so far as the statutory reading-back effect under IHTA 1984 s.142 and TCGA 1992 s.62(6) can still be achieved. This deed may be executed in counterparts, each of which when executed and delivered shall be an original, and all the counterparts together shall constitute one deed.

Each party acknowledges that the execution and administration of this deed involves the processing of personal data (name, address, date of birth, financial entitlements and tax identifiers) of the Varying Beneficiary, the New Beneficiary, the Personal Representatives and any other affected beneficiary, within the meaning of the UK GDPR, the Data Protection Act 2018 and the Data (Use and Access) Act 2025 (as commenced by SI 2026/82 with effect from 5 February 2026). Processing is carried out on the lawful bases of legal obligation, legitimate interests and (where special-category data is incidentally engaged, e.g. health-related disclaimer reasons) Article 9(2)(f) UK GDPR (establishment, exercise or defence of legal claims).

Confidentiality. The contents of this deed and the schedule of the Deceased's estate shall be treated as confidential between the parties, their professional advisers and HMRC, and shall not be disclosed to third parties without the prior written consent of the parties, save where disclosure is required by law (including under IHTA 1984 s.218A, where the variation increases IHT, requiring HMRC notification within six months).

International transfers. Any onward transfer of personal data to a third country (for example, where a beneficiary, trustee, or probate firm is located outside the United Kingdom) shall comply with the data protection test in Schedule 7 of the DUA Act 2025 (which replaces the prior "essentially equivalent" standard for adequacy assessments), using an approved transfer mechanism (UK adequacy regulations, the UK International Data Transfer Agreement or UK Addendum to the EU SCCs).

This deed and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter shall be governed by and construed in accordance with the law of England and Wales. The parties irrevocably submit to the exclusive jurisdiction of the courts of England and Wales.

This document is executed as a deed in accordance with section 1 of the Law of Property (Miscellaneous Provisions) Act 1989. It is signed by the Varying Beneficiary in the presence of a witness who attests the signature, and (where required by clause on IHT election above) by the Personal Representatives, and by any New Beneficiary or other affected beneficiary whose joinder is required. It is delivered on the date written above and takes effect as a deed on that date, executed at London.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.