Executors and beneficiaries
Deed of variation: how it works and the two-year rule
Written and reviewed by our experienced team. Checked against GOV.UK and the sources listed at the end on 15 September 2026. ProbateCheck is an independent service, not a law firm.
A deed of variation lets the people who inherit change who gets what after a death. To be effective for Inheritance Tax and Capital Gains Tax it must be made within 2 years of the death, be signed by everyone who loses out, identify what is being varied, and state that section 142 Inheritance Tax Act 1984 and/or section 62(6) Taxation of Chargeable Gains Act 1992 are to apply. It does not have to be a deed: a letter that meets HMRC's conditions is enough. Checked 15 September 2026.
GOV.UK's summary is short: you can change a person's will after their death as long as any beneficiaries left worse off agree, and the changes must be completed within two years of the death. If there is no will, the inheritance under the intestacy rules can be varied in the same way. The detail that decides whether the variation works for tax is in HMRC's instrument of variation checklist, form IOV2, and that is what this guide follows. This page is information, not legal advice; a variation should be drafted by a solicitor. Checked against the sources listed at the foot of this page on 15 September 2026.
What a variation can do
- Reduce the Inheritance Tax or Capital Gains Tax payable, for example by redirecting assets to a spouse, civil partner or charity.
- Provide for someone who was left out of the will.
- Move the deceased's assets into a trust.
- Clear up uncertainty over the will.
- Pass an inheritance straight to the next generation, or rebalance shares to reflect the beneficiaries' different circumstances (HMRC's own examples).
HMRC's conditions, from form IOV2
| Requirement | Rule |
|---|---|
| Timing | Dated within two years of the date of death. Not two years from the grant of probate. |
| Signatures | Signed by everyone whose entitlement is adversely affected. If children or unborn beneficiaries lose out, court approval is probably needed; a parent's signature on a child's behalf is not sufficient. |
| Content | Clearly identifies the inheritances being varied and how, and who is to benefit. |
| Statement of intent | Must state that the signatories intend the variation to take effect for Inheritance Tax and/or Capital Gains Tax, with the statutory references. HMRC's example: "The parties to this variation intend that the provisions of section 142(1) Inheritance Tax Act 1984 and section 62(6) Taxation of Chargeable Gains Act 1992 shall apply." |
| Form | Does not have to be a formal deed; a letter or other document will do if it meets every other condition. |
| Shares | If it redirects stocks, shares or marketable securities it must contain the stamp duty exemption certificate (category M, Stamp Duty (Exempt Instruments) Regulations 1987). |
| Telling HMRC | If the variation means more Inheritance Tax is payable, send a copy (with the IOV2 checklist) to HMRC within six months of making it, and the executors or administrators must also sign it. If it does not change the tax, you do not need to send it; keep a copy. |
The effect for Inheritance Tax and Capital Gains Tax
If the conditions are met, the variation is treated for Inheritance Tax and certain Capital Gains Tax purposes as if the deceased had made it: it is backdated to the date of death and the tax is worked out taking account of the variation. For Capital Gains Tax the variation is not a disposal by the original beneficiary, and the new beneficiary is treated as having acquired the asset from the deceased at the date of death and at the value agreed on death. Without a valid statement of intent, the same document would instead be a gift by the original beneficiary, with the usual seven-year Inheritance Tax rules applying to them.
When a variation will not work for tax
- Assets held in trust in which the deceased had a right to benefit, or gifts the deceased made but kept some benefit from: a variation cannot redirect these as if the deceased had made it.
- Varying the same thing twice. The same assets or entitlement cannot be varied more than once. Redirecting part of a legacy and later another part of what remains is allowed; redirecting the same £10,000 to a second person is not.
- Compensation from outside the estate. If the original beneficiary is paid from outside the estate to make up for what they give up, the variation is ignored for tax.
- Charities not told. Where a variation increases or creates a gift to charity (deaths on or after 6 April 2012), the charity must be notified and HMRC given evidence of that; the charity does not have to sign.
What a deed of variation does not do
It does not rewrite the will that was proved. The grant of probate and the will remain as issued and, once probate is granted, remain a public record obtainable for £16 (is a will public?). The variation is a separate document that redirects an inheritance. It also cannot be made by the executors on their own: the people giving something up must sign, and the executors only join in where the tax bill goes up.
Before you vary, read what was actually proved
A variation has to identify precisely which gift is being changed, so it starts from the will as proved. If you do not have the will, search the probate records; a copy of the grant and will costs £16, or we obtain and explain them for £29.
Frequently asked questions
Does a deed of variation have to be a deed?+
No. GOV.UK says you do not need a formal document or deed; a letter is enough if it meets HMRC's conditions: made within two years of the death, signed by everyone who loses out, clearly identifying what is varied, and containing the statement that it is to take effect for Inheritance Tax and/or Capital Gains Tax.
What is the two-year rule for a deed of variation?+
The variation must be dated within two years of the date of death to be treated for tax as if the deceased had made it. The clock runs from the death, not from the grant of probate, so a variation can be made before or after probate as long as it is inside that window.
Can you vary an intestacy?+
Yes. GOV.UK says that if there is no will the law decides who inherits, and you can make changes to that inheritance in the same way as if there were a will, subject to the same conditions.
Do I have to tell HMRC about a deed of variation?+
Only if it means more Inheritance Tax is payable, or affects the tax or valuation requirements of another estate. In that case send a copy and the IOV2 checklist within six months of making the variation, signed by the executors or administrators as well. If the tax does not change, keep a copy and do not send it.
Can a deed of variation reduce Inheritance Tax?+
It can, because it is treated as if the deceased had made the change: redirecting assets to an exempt beneficiary such as a spouse, civil partner or charity can reduce the tax on the estate. Whether it does in a given case is a question for a solicitor or tax adviser.
Can the same gift be varied twice?+
No. The same assets or entitlement cannot be varied more than once. A beneficiary who redirects part of a legacy may later redirect part of what they kept, and another beneficiary may vary their own share, but the same entitlement cannot be passed on again.
Can a parent sign a deed of variation for a child who loses out?+
No. HMRC's checklist says a parent's signature on behalf of a child is not sufficient, and that where children or unborn beneficiaries are affected you will probably need the court's approval.
Does a deed of variation change the will on the public record?+
No. The will as proved stays on the public record and can still be ordered for £16. The variation is a separate document that redirects the inheritance for the people who sign it.
What are the disadvantages of a deed of variation?+
It is final for the person giving something up; the same entitlement cannot be varied again; everyone who loses out must sign, and a child's loss needs the court's approval; it fails for tax if the original beneficiary is compensated from outside the estate; and if the tax bill rises the executors must sign and HMRC must be told within six months. None of that comes from the person who died, so a variation cannot fix a will that was invalid in the first place.
Do I need a solicitor for a deed of variation?+
Not by law: GOV.UK says a letter is enough if it meets the conditions. In practice most people use a solicitor because the document has to identify the gift precisely, carry the right statutory statement and be signed by the right people, and a mistake cannot be corrected by varying the same gift again. Solicitors' charges for a variation are not published centrally and were not verified for this page; ask for a fixed quote.
Sources checked for this guide
- GOV.UK: Change a will after a death (two years; beneficiaries who lose out must agree; no formal deed needed; send to HMRC within six months if more tax) (read 15 September 2026)
- HMRC form IOV2: instrument of variation checklist and notes (conditions, statement of intent wording, IHT and CGT effect, exclusions) (read 15 September 2026)
- IOV2 PDF (September 2014 version) (read 15 September 2026)
- GOV.UK: Search probate records (copy of grant and will £16) (read 15 September 2026)