Closing HL account post bereavement

flopsy1973

thanks
Done some calculations on the HL investments the probate value was £149533 and the value now is 164741. The other accounts i have closed do have a small gain around £1500, so how do i share this CGT tax on the gain with the other beneficiaries. Can i just give them the proceeds and they declare it? do i tell HMRC or will they come looking for me?

MichelleUK

flopsy1973 wrote: »

thanks
Done some calculations on the HL investments the probate value was £149533 and the value now is 164741. The other accounts i have closed do have a small gain around £1500, so how do i share this CGT tax on the gain with the other beneficiaries. Can i just give them the proceeds and they declare it? do i tell HMRC or will they come looking for me?

You have hit a very technical point in the administration process. Who is responsible for the the payment of CGT depends on whether the 'residue has been ascertained'. This is too technical to go in to detail here but HMRC have very detailed rules, so it would probably be best if you consult an accountant who can access the details of your particular estate. A little bit of reading is here:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg30700

Also, in a previous post, you mentioned interest. Did you know that the estate may need to pay tax on the interest, even though the banks have not deducted any? This tax is then communicated to the the beneficiaries on form R185 to include in their own tax affairs.

Some more reading:
https://www.litrg.org.uk/tax-guides/bereavement-and-tax/how-estate-taxed-during-administration

flopsy1973

ok i read a bit of this but got completely lost in layman's terms what does this mean in my situation.
thanks again

sjp999

Given the sums involved I'd say you'd be better off bringing a lawyer in to assist. Could be that they handle it such a way that they end up saving you enough to cover their fees, they might spot something beneficial that you've missed.

For sums less than you're dealing with I paid around a grand for an Edinburgh outfit to do the Scottish version of probate 12-18 months ago. I doubt I could have figured it all out for myself (plus I'm 400 hundred south of Edinburgh), well worth it for the peace of mind.

MichelleUK

flopsy1973 wrote: »

ok i read a bit of this but got completely lost in layman's terms what does this mean in my situation.
thanks again

You see, that is the problem! It sounds as if your estate has really gone beyond the bounds of a layman doing it correctly on their own.

flopsy1973

thank you
What if I share the proceeds out with my brother without declaring how are HMRC going to be aware of any tax liability, surely this happens a lot. Is this something I am over complicating and worrying about

bigadaj

flopsy1973 wrote: »

thank you
What if I share the proceeds out with my brother without declaring how are HMRC going to be aware of any tax liability, surely this happens a lot. Is this something I am over complicating and worrying about

When they find out the penalties will be harsher.

Uxb

flopsy1973 wrote: »

How will they find out? I don't think I have much liability from what I have worked out anyway
Any thoughts or previous experience?

Well now that you have told everyone on the web/MSE one way would be for the I.Revenue to politely ask MSE for the IP address you are posting from.
That will give them the ISP's name as owner of the IP address block.
Then they will less politely require the ISP to supply the physical name/owner and road address of the internet connection using that IP address at that time.
Then I'm sure they can quite easily go on from there....

flopsy1973

Uxb wrote: »

Well now that you have told everyone on the web/MSE one way would be for the I.Revenue to politely ask MSE for the IP address you are posting from.
That will give them the ISP's name as owner of the IP address block.
Then they will less politely require the ISP to supply the physical name/owner and road address of the internet connection using that IP address at that time.
Then I'm sure they can quite easily go on from there....

from what I understand I don't think there is tax to pay, I never said I was not going to inform them just need to understand more about it and asking if other people had experience of this

coyrls

I would suggest you employ a professional to sort it out for you.