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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Reduced account: effect of instrument of variation

Where an instrument of variation (IOV) (IHTM35011) is executed so that property is redirected to a chargeable beneficiary, the IOV should be considered in the normal way.

Where the IOV is redirecting property that should be included on a supplementary page, that page should be completed and delivered with the IOV and election. If the supplementary page is not delivered, you should use your judgement about whether to ask the taxpayers for the page to be provided. For example, if it is clear that the threshold will not be exceeded, there is no need to ask for the page to be delivered. But your letter accepting the IOV as being within IHTA84/S142 should include a reminder for future cases.

Personal representatives are required to provide a corrective account (IHTM10701) or corrective inventory (IHTM10751) for any property with estimated values (IHTM10479) that becomes chargeable as a result of an IOV.