Administration of Estate Tax return

travelling_about

Am hopefully nearing the end of sorting out the inheritance of a late relative. The next stage is the tax return during the administration period of the estate.

Will be using an accountant for this but I was just wondering how long it’s likely to take? (our solicitors have all the paperwork ready to hand over to the accountant I think). Is it a quicker process than doing the actual inheritance tax tax return (which seemed to take quite a long time)? Can accountants get this done quickly or are we talking months rather than weeks?
Is it a simple tax return to do? (does know of any examples online to look at?)

I hope someone can comment on any experiences they have had, especially in terms of time it takes. The whole probate process has gone on for over a year now and I would really like to get it finalised soon.

Thanks.

Tom99

Has the estate received much income during the year? Or made a capital gain?
I expect it will depend on how complicated the estate income has been and if all the right records are in order.
If it is just savings interest of under £500 no tax return is due.

travelling_about

Thanks for your reply.

I think the estate will have made a fair bit through investments and savings interest so a tax return is definitely needed. They have all the paperwork ready to do it as far as I am aware.

Perhaps it will just depend on the accountants - ie how busy they are with other tax returns. Is a few weeks a normal turnaround time for accountants to do a tax return if all paperwork is in order?

castle96

Same position. Solicitor has 'suggested' we use her mate/Accountant to deal with final tax on Estate.
Tax HAS been agreed by HMRC up until date of death. The interest earned since then is well below father's personal allowance so no tax is payable.
Therefore we have NO ? need for Accountant and all accounts can be signed off and finalised - yes?

Tom99

castle96 wrote: »

Same position. Solicitor has 'suggested' we use her mate/Accountant to deal with final tax on Estate.
Tax HAS been agreed by HMRC up until date of death. The interest earned since then is well below father's personal allowance so no tax is payable.
Therefore we have NO ? need for Accountant and all accounts can be signed off and finalised - yes?

My understanding is that only interest up to £500 earned by the estate is tax free, after that it is 20%.

getmore4less

I did the income tax return on a single piece of paper.

Table of income and tax paid for each period.
Upto DOD and two separate years for administration.

Got a refund cheque for one period along with a demand for tax due.

No forms needed.

castle96

"My understanding is that only interest up to £500 earned by the estate is tax free, after that it is 20%. "

why £500. Surely a deceased person has a personal allowance still ??

Tom99

castle96 wrote: »

"My understanding is that only interest up to £500 earned by the estate is tax free, after that it is 20%. "

why £500. Surely a deceased person has a personal allowance still ??

The estate is a separate tax entity to the deceased and the beneficiaries. The estate does not have any income tax annual allowance.
The estate as a tax entity begins on the date of death and ends when all the net assets have been transferred to the beneficiaries.