Deed of Variation HMRC Online Survey

Deed of Variation HMRC Online Survey.

In the March 2015 budget, the Chancellor George Osborne confirmed that the government via HMRC would be conducting a review with regard to the use of deeds of variation (DoV).

A deed of variation can be used up to 2 years after your death to vary your will. The government are keen to find out whether people are using deeds of variation to abuse the tax system by making changes after death, provided all the beneficiaries agree, to save either capital gains tax or inheritance tax or both.

The issue is that a deed of variation only has to be submitted to HMRC when there has been a change which results in a change in any taxes due. As a result, HMRC claim that they do not know the extent of the use of deeds of variation and hence the review.

Today, in trying to gain feedback, HMRC has published an online nine question questionnaire in addition to the paper format.

https://www.surveymonkey.com/r/T6JG2DY

We believe these are the first stages to the government changing the law on deeds of variation. We suggest that in the majority of cases deeds of variation are used to change the will or the beneficiaries resulting in tax savings. You can guess what is going to happen here.

The consultation is open until 7 October 2015. We predict there will be a change to deeds of variation law in the March 2016 budget. If a member of your family has passed away in the last two years or if you should suffer a bereavement in the coming months and may wish to consider a deed of variation, you need to do this sooner rather than later.