Probate and the legal side

What is a deed of variation?

By the Sortwell team · Updated 9 November 2026 · 5 min read

Two pairs of hands at a kitchen table passing a pen across a plain sheet of paper.

Short answer: A deed of variation is a written agreement that changes who inherits from someone's estate after they've died. It must be made within two years of the death and signed by everyone who loses out. If it includes the right statement, the change is treated for tax as though the person who died had made it. It can apply to a will or to the rules when there's no will.

On this page

Why families use one
The conditions
A worked example
Telling HMRC
When you need a solicitor
Common questions

Wills can be out of date by the time they're read. A deed of variation gives the family a way to fix that, as long as the people who'd lose out agree to it. HMRC calls it an instrument of variation, because it doesn't have to be a formal deed. A letter or other written document can do the job if it meets the conditions.

Why families use one

Some common reasons:

To include someone the will left out, such as a stepchild or a partner.
To pass an inheritance straight to children or grandchildren when the person who inherited doesn't need it.
To reduce Inheritance Tax, for example by leaving more to a spouse or charity. Estates can pay a reduced rate of 36% on some assets if at least 10% of the net value goes to charity.
To make a share-out fairer, once the family knows what the estate is worth.
To correct a will that was badly drafted or didn't reflect what the person meant.

It works for specific belongings as well as money. If a will gives a ring to someone who would rather their sister had it, they could redirect it. For something of low value, the family may not need anything so formal.

The conditions

HMRC's checklist, form IOV2, sets out what's needed for the variation to count for tax purposes:

Condition	What it means
Made within two years of the death	The two years include the anniversary, and everyone must have signed by then
Signed by everyone who loses out	All the people whose entitlement is adversely affected
Clear about what's changing	It must identify the inheritances and how they're being altered
Contains a statement of intent	It must say it's meant to apply for Inheritance Tax, Capital Gains Tax or both
Nothing paid from outside the estate	A person can't be compensated with assets from outside it
Each asset varied only once	The same legacy can't be redirected and then redirected again

If the statement is missing or a condition isn't met, the change can count as a gift by the person giving up the inheritance rather than as a change to the will. That can have tax consequences for them.

The statement refers to section 142 of the Inheritance Tax Act 1984 and, for Capital Gains Tax, section 62 of the Taxation of Chargeable Gains Act 1992. HMRC's form gives example wording.

A worked example

Here's a made-up case. Margaret leaves £60,000 to her son Tom and the rest of her estate to her daughter Ellen. Tom is comfortable, and his two children are saving for a first home. Within two years of Margaret's death, Tom signs a variation giving £30,000 each to his children.

Because Tom is the only person losing out, he's the one who needs to sign. With the right statement, the money is treated as though Margaret had left it directly to her grandchildren, so Tom hasn't made a gift for Inheritance Tax purposes.

If Tom's children had paid him anything in return, or if he'd missed the two-year limit, the arrangement wouldn't get that treatment.

Telling HMRC

Whether you need to send the variation to HMRC depends on its effect on the tax. Form IOV2 says:

If the variation means more Inheritance Tax is due, you must send it to HMRC within six months of making it, and the executors or administrators must also sign.
If it changes the Inheritance Tax on this or another estate, send a copy and the checklist to HMRC. If it doesn't affect the tax, you don't need to send it. Keep a copy, with the checklist, in the estate records.

A variation that transfers shares or other securities also needs a Stamp Duty exemption certificate.

When you need a solicitor

For a simple change between adults, a variation is often straightforward. Get legal advice if:

Anyone who would lose out is under 18 or lacks capacity, because they can't sign away an inheritance themselves.
A beneficiary has died, or the variation would affect a trust.
Inheritance Tax would go up, or a large sum is involved.
The family doesn't entirely agree.

The executor isn't always a party to the variation, but they need to know about it so they can distribute the estate correctly. Our guide to what an executor does covers those duties, and what is probate explains how a grant fits in.

Common questions

Can a deed of variation be done after 2 years?

Not for tax purposes. The two-year limit is firm and includes the anniversary of the death. After that, someone can still give away what they inherited, but it's treated as their own gift.

Do all beneficiaries have to sign a deed of variation?

No, only those who lose out have to sign. Someone whose inheritance isn't affected doesn't need to be a party, although it's sensible to keep them informed. If more Inheritance Tax is due, the executors or administrators must sign too.

Can you change a will after death without a deed of variation?

Sometimes. The people who inherit can agree informally to share things differently, which is common with belongings of modest value. For anything significant, a variation made within two years keeps the tax treatment clean.

Does a deed of variation need to be registered?

No. There's no central register. It must be kept with the estate records, and sent to HMRC within six months only if it means more Inheritance Tax is due.

Sources

This guide is general information for people in England and Wales. The rules in Scotland and Northern Ireland can differ. It isn't legal, tax or financial advice, and Sortwell isn't a law firm or a valuer. If an estate is complicated or there's a disagreement, talk to a solicitor. Figures were checked on the date above.