IHT implications of an Instrument of Variation: increased exemption
The effect of a IHTA/S142(1) variation or disclaimer is often to give the spouse or civil partner (IHTM11032) or a charity, etc, a benefit (or larger benefit) in the deceased’s estate. Before agreeing any consequential exemption from tax check that all the requirements of the exemption provisions (IHTM11000) are satisfied, and consider the instructions at IHTM35091 (redirection to spouse or civil partner) and IHTM35121 (redirection to charity).
Repayment of tax
If acceptance of a variation or disclaimer will result in a repayment of tax requiring the authority of your manager, you should not notify the taxpayer that you accept it as within IHTA84/S142(1) without the prior approval of your manager.