Finance Act 1985

84 Death: varying dispositions, and appropriations.U.K.

(1)Where, within the period of two years after a person’s death, any of the dispositions (whether effected by will, under the law relating to intestacy or otherwise) of the property of which he was competent to dispose are varied by an instrument executed by the persons or any of the persons who benefit or would benefit under the dispositions, stamp duty under [F1Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)] shall not be chargeable on the instrument.

(2)Subsection (1) above does not apply where the variation is made for any consideration in money or money’s worth other than consideration consisting of the making of a variation in respect of another of the dispositions.

(3)Subsection (1) above applies whether or not the administration of the estate is complete or the property has been distributed in accordance with the original dispositions.

(4)Where property is appropriated by a personal representative in or towards satisfaction of a general legacy of money, stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation.

(5)Where on an intestacy property is appropriated by a personal representative in or towards satisfaction of any interest of a surviving [F2spouse or civil partner] in the intestate’s estate, stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation.

(6)The reference in subsection (5) above to an interest in the intestate’s estate—

(a)includes a reference to the capital value of a life interest which the surviving [F3spouse or civil partner] has under the M1Intestates’ Estates Act 1952 elected to have redeemed, and

(b)in Scotland, includes a reference to prior rights (within the meaning of the M2Succession (Scotland) Act 1964) but, without prejudice to subsection (7) below, not to such rights as are mentioned in that subsection.

(7)Where in Scotland, on an intestacy or otherwise, property is appropriated by a personal representative in or towards satisfaction of the right of a husband to jus relicti, of a wife to [F4relictae, of issue to legitim or rights under section 131 of the Civil Partnership Act 2004, or of a civil partner to rights under section 131 of that Act], stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation.

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F6(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)Subject to subsection (11) below, this section applies to instruments executed on or after 26th March 1985 and shall be deemed to have come into operation on that date.

(11)Subsections (5) to (7) above F7... apply to instruments executed on or after 1st August 1985.