Chancellor George Osbourne delivered the autumn statement on 25 November 2015. There had been concern that the Chancellor would announce changes to deeds of variation that would limit their effectiveness.

Deeds of variation allow a beneficiary of a Will or an intestacy to redirect part or all of their share of an estate to another person. If made within two years of death, a deed of variation can result in a change to the amount of inheritance tax or capital gains tax due.

Earlier in the year, when delivering the March Budget, the Chancellor announced that the government would carry out a review into the use of deeds of variation for tax purposes.

Having considered responses to the review, the government announced in the autumn statement that they would not be introducing any new restrictions on how deeds of variation can be used for tax purposes. However, they will keep the position under review.

Given that the use of deeds of variation go beyond tax mitigation, this is good news.

For example, over two thirds of the UK population do not have a Will and in such circumstances, a deed of variation can be a lifeline for future heirs by enabling an estate to be distributed according to the wishes of the deceased’s family rather than under the strict rules of an intestate distribution.

If you are considering having the terms of a Will varied following the death of a family member or you would to like to find out more about deeds of variation please contact us on 020 8537 3448 or send an email to wills@ashtongrace.co.uk