Disclaimer of Inheritance UK (2026): How to Refuse an Inheritance Under a Will or Intestacy

A disclaimer of an inheritance (also called a renunciation of a legacy) is the act by which a beneficiary refuses to accept a gift they are entitled to receive under a will or under the intestacy rules. The key legal distinctions between a disclaimer and a deed of variation are often misunderstood: (1) A DISCLAIMER PASSES THE GIFT BACK TO THE ESTATE: when a beneficiary disclaims, the gift fails entirely and falls back into the estate. It is then redistributed under the remaining terms of the will (e.g. to an alternative or residuary beneficiary named in the will) or, if there is no such provision, under the intestacy rules. The disclaimant is treated as if they had PREDECEASED the deceased — the gift passes as it would have passed if the disclaimant had died before the testator; (2) A DEED OF VARIATION REDIRECTS THE GIFT: a deed of variation allows the beneficiary to REDIRECT their inheritance to a specific named person of their choice. Unlike a disclaimer, the beneficiary controls exactly where the gift goes. If a child inherits £50,000 and wants to redirect it to their grandchildren, a deed of variation achieves that directly; a disclaimer would pass it back to the residue or whatever the will provides — which may or may not be the grandchildren; (3) WHEN TO USE WHICH: use a disclaimer when: (a) the beneficiary simply does not want the gift and is happy for it to go wherever the will or intestacy provides; (b) a specific legacy is unwanted and the residuary beneficiary is the intended recipient anyway; (c) the beneficiary is concerned about the formalities of a deed of variation and wants a simpler mechanism; use a deed of variation when: (a) the beneficiary wants to direct the inheritance to a specific person (e.g. grandchildren; a charity; a sibling); (b) the beneficiary wants to use the inheritance for IHT planning by redirecting to a charity (IHTA s.23 exemption) or to use a child's NRB; (4) TIMING: both must generally be made within 2 years of the date of death to qualify for IHT protection under IHTA 1984 s.142. A disclaimer made more than 2 years after death has no IHT effect and may be treated as a gift from the disclaimant (a PET for IHT purposes).

The legal requirements for a valid disclaimer of an inheritance are as follows: (1) MUST BE IN WRITING: a disclaimer of a gift under a will or intestacy must be evidenced in writing. While there is no statutory requirement for a deed or for witnesses, it is strongly advisable to document the disclaimer clearly and formally in a signed letter or deed. Oral disclaimers are generally not effective. HMRC requires the disclaimer to be in writing for it to be effective under IHTA 1984 s.142; (2) MUST BE MADE BEFORE ACCEPTANCE: the most critical rule — you can only disclaim a gift that you have NOT yet accepted. If a beneficiary has already received the legacy (money paid into their account; property transferred into their name; assets distributed) they have accepted it. Once accepted, a disclaimer is impossible — the beneficiary can only make a deed of variation. Even partial acceptance may constitute acceptance of the whole legacy in some circumstances. Acting as if you own the property (spending money; taking income; occupying land) may constitute acceptance; (3) CANNOT PICK AND CHOOSE PARTS OF A GIFT: the rule against partial disclaimer of a single legacy. A beneficiary cannot disclaim part of a single gift and accept the rest. If a will leaves a residuary share to a beneficiary, they must disclaim the whole share or none of it. They cannot disclaim the property within the residue and keep the cash. However: a beneficiary CAN disclaim one legacy while accepting a separate legacy. Example: the will leaves £10,000 to a beneficiary (specific legacy) AND includes them in the residuary estate. They can disclaim the specific £10,000 legacy while accepting their share of the residue — because these are separate, distinct gifts; (4) WHAT A DISCLAIMER SHOULD CONTAIN: (a) identification of the disclaimant (full name; relationship to the deceased); (b) identification of the estate (deceased's name; date of death); (c) identification of the specific gift being disclaimed (the legacy; the intestate share); (d) a clear statement that the disclaimant refuses to accept the gift; (e) the disclaimant's signature and date; (f) if IHTA s.142 is intended to apply — a statement that the disclaimer is made under IHTA 1984 s.142(1) and/or TCGA 1992 s.62(6); (5) NO CONSIDERATION: like a deed of variation, a disclaimer under IHTA s.142 is only effective if made for NO CONSIDERATION. A disclaimant cannot be paid to disclaim (that would be treated as the disclaimant accepting and then selling the gift, triggering IHT and potentially CGT).

IHTA 1984 s.142 provides the same IHT 'read-back' protection for disclaimers as it does for deeds of variation: (1) THE IHT EFFECT OF A DISCLAIMER WITHIN 2 YEARS: if a disclaimer is made within 2 years of the date of death and satisfies IHTA 1984 s.142 requirements, the estate is treated for IHT as if the original will had always provided for the gift to pass directly to whoever receives it under the redistribution — without it ever having vested in the disclaimant. Effect: (a) the disclaimer does NOT create a PET or CLT by the disclaimant — it is not treated as a gift from the disclaimant to the next recipient; (b) the estate's IHT calculation is revised as if the redistribution was the original disposition; (c) IHT saving example: a wealthy adult child disclaims a specific legacy, allowing it to pass to their own children. Without s.142: the child inherits and later gives it to their children — a PET for IHT (7-year rule). With a disclaimer within 2 years: the gift passes directly for IHT purposes as if the child never received it — no PET, no 7-year clock; (2) WHAT s.142 REQUIRES FOR DISCLAIMERS: (a) the disclaimer must be in writing; (b) it must be made within 2 years of the date of death; (c) there must be no consideration for the disclaimer; (d) the disclaimer must state that IHTA 1984 s.142(1) is to apply; (3) IF MORE THAN 2 YEARS AFTER DEATH: a disclaimer made after the 2-year window has NO IHT protection under s.142. The disclaimer may still be possible as a matter of private law (if the beneficiary has not yet accepted) but: (a) the disclaimant may be treated as having received the gift and then given it away — creating a PET for IHT (7-year rule); (b) CGT on the gift from the disclaimant to the recipient at market value; (4) HMRC NOTIFICATION: if the disclaimer results in an INCREASE in IHT (unusual, but possible if the next recipient is a chargeable person rather than a spouse or charity), HMRC must be notified within 6 months. If IHT reduces (the more common scenario), no HMRC notification of the disclaimer itself is required, but the estate's IHT accounts must reflect the revised position; (5) INTESTACY SHARES: s.142 applies equally to intestacy shares as to legacies under a will. A surviving spouse or adult child who disclaims their intestate share can rely on s.142 if the disclaimer is within 2 years.

Capital gains tax treatment of a disclaimer is more straightforward than the IHT position: (1) NO CGT ON THE DISCLAIMER ITSELF: under TCGA 1992 s.62(6), a disclaimer of a benefit under a will or intestacy, made within 2 years of the death, has no CGT consequences for the disclaimant. The disclaimer is not treated as a disposal by the disclaimant — the disclaimant never acquired the asset for CGT purposes. There is no deemed disposal at market value; no CGT gain; (2) THE BASE COST FOR THE NEXT RECIPIENT: the person who ultimately receives the disclaimed gift (whether under the will's fallback provision or under intestacy) takes the asset at the probate value as their base cost — the same CGT uplift on death that applies to all inherited assets. Their future CGT is calculated from that probate value; (3) COMPARE WITH DEED OF VARIATION (CGT): a deed of variation is also CGT-neutral for the varying beneficiary if made within 2 years under TCGA 1992 s.62(6). The redirected recipient also takes at the probate value. So on the CGT analysis, disclaimers and deeds of variation are equally neutral within the 2-year window; (4) CGT IF MADE AFTER 2 YEARS: if a beneficiary disclaims more than 2 years after death, and the disclaimer is effective under private law (possible if the beneficiary has not yet accepted), HMRC may treat the beneficiary as having received the asset at the probate value and then disposed of it at market value — triggering a CGT gain from the probate value to the market value at the date of disclaimer. Given market appreciation, this could be significant for property or investment portfolios; (5) PRACTICAL EXAMPLE: estate holds a buy-to-let property worth £200,000 at death. Adult child disclaims within 2 years — property passes to grandchildren under the residuary gift. CGT result: no CGT for the adult child (TCGA s.62(6)). The grandchildren inherit at the £200,000 probate value. If they sell for £250,000 in year 5, their CGT gain = £50,000 (from probate value — not from the original purchase price).

A beneficiary might choose to disclaim an inheritance in a number of practical scenarios: (1) COMMON REASONS TO DISCLAIM: (a) DEBT PROTECTION: a beneficiary facing personal insolvency may disclaim an inheritance to prevent it being caught by their creditors. However: this must be done BEFORE the bankruptcy or insolvency is formalised — a trustee in bankruptcy can challenge a disclaimer made after bankruptcy on the basis that it unfairly deprives creditors; (b) IHT PLANNING FOR THE BENEFICIARY'S OWN ESTATE: a wealthy adult child who would simply add the inheritance to their own estate (increasing their own IHT bill) may disclaim, allowing the gift to pass directly to the grandchildren — skipping a generation and avoiding a second layer of IHT; (c) THE WILL'S PROVISIONS ARE ADEQUATE: if the will provides that on the death of the main beneficiary the gift passes to the correct people anyway, a disclaimer achieves the intended distribution without the formality of a deed of variation; (d) PERSONAL REASONS: a beneficiary may simply not want the gift — estrangement from the deceased; principled refusal; (2) PRACTICAL STEPS TO DISCLAIM: (a) CONFIRM YOU HAVE NOT ACCEPTED: check that no distributions have been received; no income has been taken; no action has been taken as owner; (b) ACT QUICKLY: the 2-year IHT window starts from the DATE OF DEATH — not from grant of probate. It can expire surprisingly fast in slow-moving estates; (c) DRAFT THE DISCLAIMER: a simple but clear written disclaimer identifying the gift being refused. For IHTA s.142 and TCGA s.62(6) protection, include the statements that those sections are to apply. A solicitor should draft or review this for any significant sum; (d) SEND TO THE PERSONAL REPRESENTATIVE: deliver the signed disclaimer to the executor or administrator so they know the gift is refused and can redistribute accordingly; (e) CONSIDER THE IMPACT: trace through what happens to the disclaimed gift under the will and intestacy. Will it go to the right people? If not, a deed of variation (redirecting to a specific recipient) may be preferable; (3) NOTE ON PARTIAL DISCLAIMER OF A RESIDUARY SHARE: if the beneficiary has a residuary share and wants to disclaim part (e.g. keep cash assets but disclaim investments), this is NOT possible under the single-gift rule. They must disclaim the entire residuary share. In practice, where a beneficiary wants to redirect only part of their share, a deed of variation is the correct instrument.