AP4344 - Deceased Persons: General

When someone dies, the responsible office will have to finalise the liability and make any repayment due for all periods up to the date of death. And in straightforward cases it will also be responsible for finalising the liability of the period of administration - see TSEM7366.

But where any of the following situations arise or are likely to arise, the period of administration will be the responsibility of a specialist HMRC Trusts Office or other designated office.

• A trust is created under the terms of the deceased’s will or the rules of intestacy (TSEM7366 and TSEM7378).
• A corporate trustee is acting (TSEM7366).
• The main office of the deceased was PD1 who will also deal with the period of administration.
• The deceased was a Lloyds Underwriter and High Net Worth Individuals Unit will deal with the period of administration.

HMRC Trusts Edinburgh is responsible for dealing with all aspects of the period of administration in complex cases (subject to the exceptions at TSEM7366). A case is regarded as complex if:

• the tax liability for the whole of the administration period is in excess of £10,000, or
• the estate has a value at the date of death in excess of £2.5m, or
• the proceeds of assets sold in any one tax year by the personal representatives exceed £250,000.

If the estate does not fall into any of the above categories but is not straightforward so cannot easily be dealt with under the informal payments procedures it should be referred to HMRC Trusts Edinburgh to be dealt with (see TSEM7366 and TSEM7376).

Where there is a prolonged administration period the tax consequences can become quite involved. But if the local processing office considers that the estate’s tax affairs are relatively straightforward and the administration has been completed within two calendar years from the date of death, any liability can be dealt with informally under the procedures outlined at TSEM7410

Prepare a sub-folder 133P(X), this folder should be used to contain all relevant papers and to control the actions taken. The sub folder provides a step by step guide and the relevant references to guidance in this manual and the Trusts Settlements and Estates manual (TSEM). You do not need to prepare a 133P(X) if the case is clearly NNL and you are not issuing a form R27. See AP4380