This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Deceased Estate

tax999
Posts:18
Joined:Mon Nov 25, 2019 12:43 pm
Deceased Estate

Postby tax999 » Fri Jan 28, 2022 3:39 pm

Situation:-

Deceased's estate is worth around £600k. All investments and accounts, with the exception of premium bonds, have been transferred to surviving spouse.

Do I need to complete a Tax Return for the period of administration?

HMRC guidance notes say if assets over £500k were sold, you need a tax return. Does this include the transfer?

maths
Posts:8447
Joined:Wed Aug 06, 2008 3:25 pm

Re: Deceased Estate

Postby maths » Fri Jan 28, 2022 6:51 pm

Per HMRC:

"When you must send a tax return for the ‘administration period’
Fill in a trust and estate tax return if any of the following apply:

the total Income Tax and Capital Gains Tax due for the administration period was more than £10,000
the estate was worth more than £2.5 million at the date of death
the date of death was before 6 April 2016 and more than £250,000 a year came from the sale of the estate’s assets by administrators or executors
the date of death was on or after 6 April 2016 and more than £500,000 a year came from the sale of the estate’s assets by administrators or executors
The trust and estate tax return is only for the estate - it’s separate from the return you sent on behalf of the deceased".


The transfers to the surviving spouse would have precipitated no monies (hence below £500k). Presumably no sales generating cash were made by the executors.


Return to “Income Tax”