Readers’ forum: Will deed of variation result in stamp duty land tax liability removal?

A widow died leaving her estate worth £725 000 to include her house worth £660 000 to her three adult children (A B and C) in her will. A wants to keep the house and so buy B and C out and this is all agreed. A will sell her house and move in to the deceased’s house on completion. Obviously the executors (who are A B and C) can appropriate one-third of the property to A in line with her beneficial entitlement in the will.

A will though have to pay stamp duty land tax (SDLT) on the purchase of two-thirds. However it has been suggested that they execute a deed of variation (DOV) with inheritance tax and capital gains tax elections that the will be read and construed as if instead of the gift of residue ...