Reporting a Simple Estate to HMRC - Advice

bakkesukuk

Hi

I am an executor of my fathers estate. 

The house is currently going through conveyancing, and I am preparing to close down the estate

The estate fits into the definition of a simple estate as defined by gov.uk

"Reporting on ‘simple’ estates

Report tax owed in the administration period simply by writing to HMRC (known as ‘informal arrangements’) if all of the following apply:

• the estate was valued at less than £2.5 million when the person died
• the total Income Tax and Capital Gains Tax due is less than £10,000
• you did not sell more than £500,000 worth of assets in any single tax year during the administration period

To report the estate send a letter to HMRC at the end of the administration period, including:

• your name, address and phone number
• the name, address, National Insurance number, and Unique Taxpayer Reference (UTR) of the person who died
• any Income Tax and Capital Gains Tax still due for the whole administration period
• any Income Tax and Capital Gains Tax you have reported and paid during the administration period, for example if you sold property

Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom

HMRC will then send you details on how to pay any tax the estate owes."

This sounds simple, forgive the pun, but I trying to think what level of detail is best to get the quickest outcome. There is nothing to hide, but equally I do not want to provide insufficient detail which merely leads to further correspondance. There is no GCT arising from the house sale, there is no other income from the estate so no tax to pay - indeed arguably there ought to be a refund because he was taxed on assumed annual pension income, but died before reaching the income tax threshold over which tax becomes due.

Can anyone provide an example / template ??

Thank you in anticipation.

Mike

Rich_Tribe

I am looking for the same :-)

I think I will keep the financial details as just a summary of the total taxable income over the administration period.

I will probably give separate figures for Divident income & Savings income, but no more detail unless it is requested.

poppystar

But aren’t you saying in your post that there is no tax due? If so then there is nothing to report. What “outcome” are you looking for? 

This sounds simple, forgive the pun, but I trying to think what level of detail is best to get the quickest outcome. There is nothing to hide, but equally I do not want to provide insufficient detail which merely leads to further correspondance. There is no GCT arising from the house sale, there is no other income from the estate so no tax to pay - indeed arguably there ought to be a refund because he was taxed on assumed annual pension income, but died before reaching the income tax threshold over which tax becomes due.