Registering estate for income tax and CGT
Postby Brightonian » Wed Apr 28, 2021 3:45 pm
I am dealing with a straightforward estate where the main asset is a house. The Probate Value given on IHT400 was £900,000 but it sold for £875,000. I have made a claim for IHT relief on IHT38. The PRs will have no CGT to pay. I looked at the HMRC website and it states that the estate must be registered for tax where the PRs dispose of assets worth more than £500,000 in any tax year. However, further down the page, it states that the estate should register by 5 October after the end of the year in which the estate starts to have income or 'has chargeable gains on which tax is payable.' This seems to suggest that you do not need to register if there is no tax payable. On the other hand, the PRs have sold an asset worth £875,000. I should be grateful for views on this matter. Apart from the house, there is just some bank deposits which have already been paid to the beneficiaries, s it does not meet any of the other criteria for registration.