IHTM35031 - Form IOV1: introduction

Form IOV1 is designed to take you through all the conditions that need to be satisfied in order for an Instrument of Variation (IoV) to meet the conditions of IHTA84/S142.  It also highlights matters that may require further investigation or referral before you can accept that the IoV is effective for IHT purposes.  You will need to complete the form whether or not you have the authority to accept that the document meets the conditions in IHTA84/S142.  The form should be kept on the file for future reference.

The matters covered on form IOV1 are listed below with links to more detailed guidance on each point.

  • The IoV must be dated within two years of the death. (IHTM35032)
  • The IoV must be signed by all the persons whose interest is affected. (IHTM35041) 
  • There must be a valid election (IHTM35051) if executed before 1 August 2002 or a statement of intent (IHTM35028) if executed on or after that date.
  • The IoV must contain a Stamp Duty exemption certificate if the instrument of variation alters the destination of stock, shares or marketable securities and the IoV acts as the form of share transfer (IHTM35060)
  • The IoV may only vary certain parts of the deceased’s estate. (IHTM35071)
  • The interests varied must not have been varied before. (IHTM35081)
  • The IHT implications of property redirected to the surviving spouse or civil partner (IHTM11032) (IHTM35091) need to be considered.
  • There must be no property brought in from outside the estate to compensate the original beneficiary. (IHTM35100)
  • The IoV may affect the tax or valuation requirements in another estate. (IHTM35110)
  • The IHT implications of property redirected to charity (IHTM35121) need to be considered.
  • The IHT implications of any trust created by the IoV (IHTM35131) need to be considered.