Hi,
Has anyone had success in claiming the 36% rate of IHT following a deed of variation after the two year deadline? The deed was completed in time, but reporting the change to HMRC was outside the two years. I’m waiting for HMRC to respond but in the meantime just wanted to see if anyone else had success so I know if it is possible, and can argue with them if they reject it.
Thanks
The 2 year period applies only to the requirement that a variation is executed by all required parties, not that it also needs to be notified to HMRC within that period.
That is not to say there is no time limit on notifying HMRC if there is any change to the IHT liability as a result of the variation, mindful of ss.240 and 241 IHTA 1984.
Provided the variation meets the requirements of s.142 and you are within the time limit in s.241, the lower rate of IHT should be applied and a refund obtained.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals