Finance Act 1985

84 Death: varying dispositions, and appropriations. E+W+S+N.I.

(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 [F1 Part 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 husband or wife 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 husband or wife has under the M1 Intestates’ Estates Act 1952 elected to have redeemed, and

(b) in Scotland, includes a reference to prior rights (within the meaning of the M2 Succession (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 jus relictae or of issue to legitim, stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation.

(8) An instrument in respect of which stamp duty is not chargeable under the heading mentioned in subsection (1) above by virtue only of subsection (1), (4), (5) or (7) above shall be chargeable under this subsection with stamp duty of [F2 £5].

(9) But an instrument which is chargeable under subsection (8) above shall not be treated as duly stamped unless it has, in accordance with section 12 of the M3 Stamp Act 1891, been stamped with a particular stamp denoting that it is duly stamped.

(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 and, so far as it relates to subsection (5) or (7), subsection (8) above apply to instruments executed on or after 1st August 1985.

Annotations:

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Amendments (Textual)

F1 Words in s. 84(1) substituted (27.7.1999 with effect in relation to instruments executed on or after 1.10.1999) by 1999 c. 16, s. 112(4)(6), Sch. 14 para. 11(a)

F2 Word in s. 84(8) substituted (27.7.1999 with effect in relation to instruments executed on or after 1.10.1999) by 1999 c. 16, s. 112(4)(6), Sch. 14 para. 11(b)

Modifications etc. (not altering text)

C1 Ss. 83(2), 84(8) excluded by S.I. 1987/516, reg. 2(1)(2)(b)

C2 Ss. 82(5), 84(9) restricted by S.I. 1987/516, reg. 5

Marginal Citations

M1 1952 c. 64.

M2 1964 c. 41.

M3 1891 c. 39.