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Free Deed of Variation Template

A deed of variation allows beneficiaries to redirect their inheritance under a will or intestacy rules within two years of the death. Use our free UK template to vary the distribution of an estate for tax planning or family purposes.

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DEED OF VARIATION
Instrument Of Variation  ·  IHTA 1984 S.142  ·  TCGA 1992 S.62(6) ·  England And Wales
VARYING BENEFICIARY
James Robert Sinclair
8 Cavendish Place, London, SW1A 1PB, Son of the Deceased, DOB 1978-02-09
ESTATE OF
Eleanor Margaret Sinclair
Date of death: 2025-11-14, late of 12 Rosemary Lane, Bath, BA1 2QN, Personal Representatives: James Robert Sinclair and Margaret Anne Sinclair
Estate of Eleanor Margaret Sinclair
Within 2 years of death (IHTA 1984 s.142(1)) · Value varied: 50,000 GBP
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.
1.
RECITALS
(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.
2.
VARIATION
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.
3.
NO CONSIDERATION GIVEN
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).
4.
STATUTORY TWO-YEAR WINDOW
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.
5.
IHT ELECTION (IHTA 1984 S.142)
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.
6.
CGT ELECTION (TCGA 1992 S.62(6)–(9))
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.
7.
HMRC FILING
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.
8.
EFFECT ON VARYING BENEFICIARY
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.
9.
INHERITANCE (PROVISION FOR FAMILY AND DEPENDANTS) ACT 1975
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).
10.
SEVERABILITY AND INTERPRETATION
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.
11.
GOVERNING LAW AND JURISDICTION
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.
12.
EXECUTION AS A DEED
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 Effective Date first written above.
VARYING BENEFICIARY
James Robert Sinclair
Date: ____________________
PERSONAL REPRESENTATIVE(S)
James Robert Sinclair and Margaret Anne Sinclair
Date: ____________________
NEW BENEFICIARY
National Trust for Places of Historic Interest or Natural Beauty
Date: ____________________

What Is a Deed of Variation?

A deed of variation is a legal document that allows beneficiaries of a deceased person’s estate to alter the distribution of assets after death. It effectively rewrites the relevant provisions of the will or intestacy rules as if the variation had been made by the deceased.

Under Section 142 of the Inheritance Tax Act 1984 and Section 62(6) of the Taxation of Chargeable Gains Act 1992, a variation made within two years of death is treated for tax purposes as if the deceased had made the amended disposition. This can produce significant inheritance tax and capital gains tax savings.

Deeds of variation are widely used across the United Kingdom to redirect assets to other family members, create trusts for minors, pass gifts to charity for UK IHT relief, or correct perceived unfairness in the original distribution of the estate.

What's Covered in This Template

Our deed of variation template covers all essential elements for a valid and tax-effective variation.

Deceased Person Details

Full name, date of death and identification of the deceased whose estate is being varied.

Original Beneficiary Details

Names and details of the beneficiaries who are redirecting their entitlement.

New Beneficiary Details

Full names and identifying information of the persons or entities receiving the redirected assets.

Will or Intestacy Reference

Reference to the original will, grant of probate or letters of administration under which the entitlement arises.

Description of Assets Varied

Clear identification of the specific assets or share of the estate being redirected.

Tax Election Statement

Formal statement electing for the variation to be treated as made by the deceased under Section 142 IHTA 1984.

HMRC Notification Clause

Requirement to notify HMRC within six months if additional IHT becomes payable as a result of the variation.

Confirmation of No Consideration

Declaration that no payment or benefit has been received in exchange for making the variation.

Executor Consent

Space for the personal representatives to confirm they are joining in the deed where required.

Execution and Witnessing

Proper execution block for a deed with witness attestation.

How to Create a Deed of Variation

Follow these steps to redirect an inheritance effectively and within the statutory time limits.

  1. 1

    Identify the Estate and Beneficiaries

    Enter details of the deceased, the date of death and the beneficiaries who wish to vary their entitlement.

  2. 2

    Specify the Variation

    Clearly describe which assets or share of the estate are being redirected and to whom they will pass instead.

  3. 3

    Include the Tax Election

    Add the formal statement electing for the variation to be read back into the will under Section 142 IHTA 1984.

  4. 4

    Obtain Executor Consent

    If the variation results in additional IHT, the personal representatives must join in the deed and notify HMRC.

  5. 5

    Execute as a Deed

    All varying beneficiaries must sign the document as a deed in the presence of a witness. Deliver within two years of the death.

Legal Considerations

A deed of variation must comply with strict statutory requirements to achieve its intended tax treatment.

This template is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.

Reviewed for England & Wales law

Two-Year Time Limit

Under UK law, the variation must be made within two years of the date of death to qualify for read-back treatment under Section 142 IHTA 1984. There is no provision for extending this deadline, so prompt action is essential for British beneficiaries.

No Consideration Requirement

The variation must not be made for any consideration in money or money’s worth, other than the making of a variation by another beneficiary. If a beneficiary receives compensation for varying their entitlement, the UK tax read-back treatment will not apply.

HMRC Notification

If the variation results in additional United Kingdom inheritance tax becoming payable, the personal representatives must notify HMRC within six months of the date of the deed. They must also join in the deed to indicate their consent under English law.

Minors and Incapacitated Beneficiaries

A variation on behalf of a minor or a person who lacks mental capacity requires approval from the British courts. An application must be made, and the variation will only be effective if the UK court is satisfied it is in the best interests of the protected party.

Frequently Asked Questions

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