Settling an Estate's Tax Position

[dibdabable]

Hope someone can help. Basically my cousin is an executor along with his sister,they are also the sole beneficiaries. They have asked me to help with the admin side of things, which I've been doing.
Probate was granted in August, the three Bank and Building Society Accounts have been released and there are no outstanding debts other than a few Utilities. Notice expired in the London Gazette in early November.
A house will be being put on the market very soon and as said all p[roceeds wil be distributed to the sister and brother. The valuation for Probate purposes was £140,000 but work on the property has now increased the value to £165,000, they have spent £10,000 on renovating and modernising.

An R27 shows that no Tax refund is payable.

My question is once the house has sold, what other info needs to be given to the HMRC.For example I don't think Capital Gains Tax will be applied due to their respective allowance and the outgoings they've paid, but is that right and do they still need to send in some form to confirm this. At what point can the Executors distribute the Estate. When I was a beneficiary wew were told we had to wait for HMRC to confirm the Esate Tax position,before distribution but never really knew what that meant. Really grateful of any input.Thanks.

[pqtaxation]

...My question is once the house has sold, what other info needs to be given to the HMRC. For example I don't think Capital Gains Tax will be applied due to their respective allowance and the outgoings they've paid, but is that right and do they still need to send in some form to confirm this. At what point can the Executors distribute the Estate. When I was a beneficiary wew were told we had to wait for HMRC to confirm the Esate Tax position,before distribution but never really knew what that meant. ....

From what you wrote, the house was the only major asset in the death estate and so there was no inheritance tax (IHT) payable as the IHT205 account previously submitted presumably showed.

Hence HMRC will not confirm “the Estate Tax position” as there is no liability to IHT.

There appears to be nothing to prevent the administration of the estate being completed, the estate accounts prepared (and signed by executors/beneficiaries), the estate return submitted to HMRC for the interest earned and assets paid out/appointed out to beneficiaries.

The two beneficiaries can proceed to sell house. If sold for gross £150k in total that would be £75k disposal proceeds per person and so diposal by needs to be (as more than £42,400 each = 4* annual exempt amount for CGT of currently £10,600) to be reported on the self-assessment return of each for the year of sale. But on your figures the net gain realised should be below annual exempt amount of each and so no CGT payable.

The vendors’ solicitor to be used for house conveyance will probably give your cousins specific informal guidance on their completing estate administration for only a marginal, if any, additional cost.