A transaction following death which varies the disposition of property of which the deceased was competent to dispose made by will, intestacy or otherwise is exempt from charge providing certain conditions are satisfied.
The conditions are:
•the transaction is carried out within two years of death; and
•no consideration in money or money’s worth other than the making of a variation of another such disposition is given for it.
This provision replicates the terms of a relief from inheritance tax (IHTA 1984, s. 142(3)). The inheritance tax relief will be denied if consideration is given for the variation (in which case there may also be a charge to SDLT)