Capital Gains and Interest after grant of Probate

Getting close to done and have a couple of questions about taxes ( not IHT)
Probate was granted in May last year but stocks only got sold in March this year and  there were Capital Gains and dividends since grant of probate but none between DOD (date of death) and grant of Probate.
Additionally, the Executor's account has earned about £100  in Interest over the last year.
Now it is time to finish up.
So, does the 'estate'  have to account for  and report the capital gains, interest etc since grant of Probate or is that for us  the recipients to report based on the stocks gain from DOD?
Is any tax for the gain due in the tax year the proceeds are paid  out of Executors account ( this year)   or March ( last tax year)  when the stocks were actually sold & paid into Executor's account?

I suppose this really boils down to " Once Probate is granted, are all gains in value - Interest dividends, CG's  still taxable to estate until paid out or are recipients responsible?"   And  if recipients of estate are responsible do  they wait until they actually receive the money from the estate to declare it?

Replies

  • edited 30 September 2020 at 7:17PM
    naedangernaedanger Forumite
    3.1K Posts
    Seventh Anniversary 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭
    edited 30 September 2020 at 7:17PM
    I believe tax is due on all realised gains and income received while the estate is being administered (i.e. from date of death to date of distribution), but the estate does get a capital gains allowance (equal in amount to the personal cgt allowance) but I don't think it gets any income tax allowance.

    (The realised gains would be calculated on the change in value from date of death to date they were sold. The cgt rates are not the same as for individual people.)

    See the following page about what the executor needs to report (scroll down to "Telling HMRC about the ‘administration period", and also note there are reporting requirements even if the estate does not require to complete a return).

    https://www.gov.uk/self-assessment-tax-returns/returns-for-someone-who-has-died

    So (I believe) in terms of your final questions, it is the executor's responsibility to report and pay tax during the administration period.

Sign In or Register to comment.
Latest MSE News and Guides

Card providers to reserve up to £100

When you pay at supermarket fuel pumps

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals