We have a debate in the office about DOTAS and the Professional Conduct in Relation to Taxation guidance with regard to deeds of variation.
HMRC guidance states that deeds of variation are not notifiable as they are not a breach so this is not in issue.
However, our debate arises with regard to situations where a beneficiary dies before making a deed of variation in which case, a variation can be done to vary the second deceased’s entitlement in the estate of the first deceased. It is often the beneficiaries of the second deceased who will make the variation but HMRC accepts that the PRs of the deceased beneficiary can make the variation subject to various conditions. The guidance is contained in IHTM35042: https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm35042.
Apparently some HMRC reps said at a STEP conference that some DoVs could be notifiable and we’re just wondering whether this type could be. Does anyone have any thoughts on this?
Hart Brown Solicitors