IHTM35043 - Who should make the instruments?: income between two deaths
Where an instrument of variation (IoV) by the beneficiaries of a dead beneficiary is accepted as within IHTA84/S142 (1), the taxpayer may occasionally ask for any income arising on the property concerned between the two deaths to also be treated as redirected. »Ê¹ÚÌåÓýapp purpose is to increase the reduction in the second estate. You should deal with such a request as follows
- if the IoV specifically redirects the income, you should allow a deduction for the net amount of any such income included for IHT purposes in the second estate, but
- if the IoV is silent about the income and deduction is requested, you should allow a deduction only if it is confirmed that the income was actually in the second estate and had not been spent or been the subject of another disposition.