AP4380 - Deceased Persons; Outstanding Tax Due At Date Of Death

In non SA cases where it is unclear as to whether there will be any repayment due up to the date of death, form R27 can be used. This is because it now primarily asks for information to finalise the tax position up to the date of death, whether there is a repayment or not.

You should however still send the covering letter and other enclosures as outlined at AP 4344(a).

In cases where it is absolutely clear that no repayment arises, and that more tax is likely to be payable, you should make this fact clear in the letter, and advise the personal representative not to complete pages 3 and 4 of the R27. apart from the final declaration on page 4.

Once you have agreed the amount of the total liability to the date of death you should prepare and issue P254(A or B)(Z) to the personal representative with an appropriate covering letter requesting voluntary payment (it is not necessary to create a formal charge) see PAYE90011. Ask for payment to be made to the appropriate Accounts Office and enclose a freepost reply envelope.

See AP4380(a) for action necessary where payment is not received or completed R27 is not received.

(Further guidance is available in the PAYE on line Manual, PAYE90011 and PAYE93027, and the Debt Management and Banking Manual)

In no liability (NNL) cases, a decision should be made on a case by case basis as to whether an R27 is needed. Unless there are particular concerns it is unlikely that any enquiries will be necessary, unless the Personal Representative contacts us.

The R27 specifically asks;

• for information which will enable you to decide if any liability is likely to arise during the administration period ,or if a trust has been created. 

From this you can decide whether to accept responsibility for the period of administration yourself or whether to refer it to a specialist Trust Office (TSEM7366)

• if probate, confirmation or letters of administration either have, or will be, obtained. 

Where probate etc is not being obtained and the value of the estate is likely to exceed £5000, the claimant is asked to explain why on the R27. This is because probate has to be granted before the personal representative can administer the estate. Failure to obtain it could suggest that there are some unusual features or undisclosed assets in the estate.

Cases falling in this category should be considered by the compliance manager for further enquiry.

Most estates valued at less than £5000 do not have probate granted, and banks etc will usually release small assets upon the production of the death certificate.