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Paying our the income from the estate of Mr Dog - Expenses(Question 2)
John_Pierpoint
Posts: 8,401
Forumite
Last night I found a reasonably comprehensive taxation site covering most of the common tax situations.
It had some observations about claiming back the expenses; the legitimate sums paid during the administration by the personal representatives (Executors/administrators).
It seemed to take a somewhat cowboy attitude of "make sure you account for the expenses and put them against the income, starting with dividends" - thus minimising additional rate income tax..
Obviously had the deceased been operating a business or renting out property, the executor would be standing in his shoes and the normal trading situation would apply and I would be distributing the profits..
However in the case of the nonagenarian Mr Dog, the only income has been share dividends and interest on money on deposit (plus a premium bond prize).
My expenses have been:
Correspondence (A dozen letters to Barclays:eek: etc. etc.)
Frequent travel across London.
Fees for certificates.
A fee to a solicitor to send me a letter confirming the nature of the partial intestacy, as dissected here on the MSE forums
http://forums.moneysavingexpert.com/showthread.html?t=1164505.
Hiring a van to take the "junk" down to the tip.
Costs of valuing the personal effects.
Etc.
I have also scoured the "Trusts" pages for guidance and found the generalised opinion that expenses have to be related to securing the income to be chargeable against the income (rather than the capital). There are some nuggets of opinion such as "travel is almost always not accepted as a charge against income") .
So my question is:
What sort of expenses could be charged against income?
It had some observations about claiming back the expenses; the legitimate sums paid during the administration by the personal representatives (Executors/administrators).
It seemed to take a somewhat cowboy attitude of "make sure you account for the expenses and put them against the income, starting with dividends" - thus minimising additional rate income tax..
Obviously had the deceased been operating a business or renting out property, the executor would be standing in his shoes and the normal trading situation would apply and I would be distributing the profits..
However in the case of the nonagenarian Mr Dog, the only income has been share dividends and interest on money on deposit (plus a premium bond prize).
My expenses have been:
Correspondence (A dozen letters to Barclays:eek: etc. etc.)
Frequent travel across London.
Fees for certificates.
A fee to a solicitor to send me a letter confirming the nature of the partial intestacy, as dissected here on the MSE forums
http://forums.moneysavingexpert.com/showthread.html?t=1164505.
Hiring a van to take the "junk" down to the tip.
Costs of valuing the personal effects.
Etc.
I have also scoured the "Trusts" pages for guidance and found the generalised opinion that expenses have to be related to securing the income to be chargeable against the income (rather than the capital). There are some nuggets of opinion such as "travel is almost always not accepted as a charge against income") .
So my question is:
What sort of expenses could be charged against income?
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