R27 question

Kev_E

Hi All

I just need a quick bit of advice about the R27 tax form.
My mother passed away in May and I am the executor. We are currently applying for Probate with the help of a solicitor as I live quite far away and her partner is willing to pay to make things easier on myself.
I'm filling out the R27 form and most of it is quite simple since she didn't earn anything in the time between the start of the tax year and her death apart from Personal Independence Payments.My only confusion is question 12. Do you expect the estate to get any untaxed income or sell any chargeable assets during the administration period?
We will have to sell her house to cover the mortgage and a large secured loan as she only had Accidental Death insurance. So am I right in assuming that I answer yes to question 12 and then no to the second part. We not expecting to get more than what I've already declared on the IHT form.

Thanks in advance for any help

nom_de_plume

I would say that selling the house is not creating income and would answer no. If you were to rent the house out during the administration period, that would be untaxed income but by selling you are merely converting it into cash and not creating additional wealth.

Kev_E

Thank you for your help
That's what's confused me. Some people have said no like yourself because it's not generating income. I've also read that it should be yes because the house is a chargeable asset and if the value increases over the administration period then we will need to pay Capital Gains Tax on that increase.
It's all very confusing and I didn't want to be on hold with HMRC for another half hour.

nom_de_plume

Have a look here.
Probably better advice than my pure guesswork answer.

getmore4less

the reality is it makes little difference what you put its just a heads up for hmrc.

if you need to do an admin return you can do that when needed.

hmrc are often happy to work from a simple letter with the relevant details.

Kev_E

Thank you both for your help, it is much appreciated.
I'll put a yes and then a no and write in after we've sold the house.