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Where Taxpayers and Advisers Meet

s27 Trustee Act Notice

Joined:Wed Aug 06, 2008 3:55 pm
s27 Trustee Act Notice

Postby umeshg1 » Tue Jan 26, 2021 9:21 am

I understand s27 Trustee Act Notice is to allow thirds party creditors to come forward if they have a claim against an estate of the deceased. The S27 notice expired in September 2020

HMRC is considered a third party. In December 2020 HMRC has opened a backdated tax enquiry on the deceased personal tax returns. My understanding is that HMRC are a third party and the notice has expired and therefore they cannot ask for any backdated tax. Can you please confirm if my understanding is correct

Thank you

Joined:Fri May 16, 2014 3:47 pm

Re: s27 Trustee Act Notice

Postby AGoodman » Tue Jan 26, 2021 4:11 pm

No, i'm afraid you're being over-optimistic:

- The executors are still liable to any claims of which they have notice when they make the distribution (even long after giving notice) - if they distributed the last of the estate in, say, October 2020 (and did not expect the HMRC enquiry) they would be free of liability. Once they are made aware of an enquiry, they have notice of a potential claim and remain on the hook to the extent of the remainder of the estate assets in their possession.

- A s.27 notice only protects the executors, it doesn't prevent HMRC from seeking any back tax from the beneficiaries who received the distributions.

Joined:Wed Aug 06, 2008 3:25 pm

Re: s27 Trustee Act Notice

Postby maths » Tue Jan 26, 2021 7:18 pm

As AG points out s27 offers no protection against an HMRC enquiry.

Presumably HMRC refer to s9A TMA 1970; if so, notice must have been given by HMRC within 12 months of delivery of the tax return.

Joined:Wed Aug 06, 2008 3:55 pm

Re: s27 Trustee Act Notice

Postby umeshg1 » Wed Jan 27, 2021 3:21 pm

Thank you all for your replies

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