Deceased Estate

[tax999]

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]

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.