Closing HL account post bereavement

I have just noticed that according to an earlier post

http://forums.moneysavingexpert.com/showthread.php?p=71253086#post71253086

your mother died in August 2016.

Did you advise HL?

I ask because according to their T&Cs

A36 - death
Please note this section A36 does not apply to the SIPP.
On your death we will continue to rely on these Terms. If you have an
HL Vantage ISA, its tax-free status will end on your death. Your
representatives should send us either the original or a certified copy of
your death certificate. Where Accounts are held in joint names we will
treat the survivor as the only person interested in any securities or monies
and the Account will be re-registered into the name of the survivor, but
in all other respects the Account will remain unchanged. Otherwise, on
notification of death access to your Account will be frozen. Once we have
received an original copy of the grant of probate your representatives will
be able to sell or transfer your investments, but not buy investments. If
your representatives do not instruct us to close your Account within six
months we will return your assets (less any relevant annual charges for
holding investments) to your estate as either stock or cash, at our
discretion. Interest will be paid until the date of Account closure. Any
Loyalty Bonus will be paid in the form of cash and not units.

Presumably you have a list of your mother's investments.

The details for each on HL will indicate OEIC/UT/IT etc.

CGT only applies to gains which have arisen since the date of death.
IE only to increases in the value of the investments between that date and the date of sale.

The link in Xylophone's post will hopefully explain it for you, and the reliefs that are available.

There is a difference between an executor and a beneficiary even though an executor can also be a beneficiary.

With regard to ISA tax status on death, see HL T&C's and post 3 above.

Assets like shares and houses have a probate value.

The executor would compare the value at date of disposal with the probate value to establish any gain.

The link above discusses using the executor's CGT allowance as against a beneficiary's own CGT allowance.


When disposing of assets, an Executor should be mindful of whether a sale will result in Capital Gains Tax being payable. If so, an Executor should consider whether a sale on behalf of a beneficiary/beneficiaries in their (ie the Executor's or Executors')capacity as Bare Trustee would mean that Capital Gains Tax could be avoided.

For example, if a property or shares were being sold at a capital gain of over £11,100 it may be advantageous to appropriate (ie transfer in specie) the property, or shares of the property, to the beneficiaries prior to sale. This way each beneficiary would have their own annual Capital Gains Tax allowance available to offset against any gain.

For more information see How to Be an Executor of a Will.

If you are not sure of how to proceed, you could consult a solicitor/tax accountant.