I am administering the estate of the second person in a married couple to die. This estate includes an IOU secured on the house which was created when the first spouse died. Following introduction of residential nil rate band, the estate has no need for the debt to have increased beyond the original amount owed and due to the income tax payable the trustees would like to be able to disclaim the indexation. The problem is the wording of the ‘Sum Owing’ on the charge states that it is the original amount owed multiplied by the index figure in the Index of Retail Prices which seems to be inextricably linking the debt and the indexation element. The trust was introduced via a deed of variation and in this deed the trustees have the power to waive payment or interest. So my question, predictably, is can the trustees waive payment of the indexation element without creating any income tax liability? Beneficiaries of trust and estate are the same. Thank you in advance if anyone can help