AP4381 - Deceased Persons: When to issue Form R27

Repayments to Date of Death

Where it appears that a repayment may be due up to date of death and you have not received either an SA return or a claim to repayment for that period, you should issue form R27 to the personal representative together with a covering letter and other enclosures as outlined at AP4344.

Where you are not sure if a repayment will arise, or where it is likely that tax will be payable , the R27 can still be issued (see AP4380)

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 R27includes;

• a formal claim to repayment,
• authorisation for a nominee to receive it,
• information about the administration of the estate,
• a request for details of income, tax deducted, reliefs and allowances claimed, for the period to date of death.

Where the deceased was an SA taxpayer or annual claims case, the R27 offers the alternative of completing an SA Return for the period to date of death at that time(ie in year) rather than waiting until the end of the tax year. There are appropriate tick boxes on page 2 of the R27.

Although SAM advises that in year returns should not usually be encouraged, the death of a taxpayer is a situation requiring a sensitive approach, hence the option of completing the in year return has now been included on the R27.

Situations where SA return to Date of Death not needed.

It is envisaged that a SA Return to date of death will be required in all SA cases, although there are some particular circumstances outlined below where that requirement can be waived by an inspector or manager if the information provided informally is treated as complete and accurate. These will mainly be situations where the income etc for the period to date of death does not meet the criteria for requiring a SA Return.

In these cases we can provide the Personal Representative with early finality by confirming that an enquiry will not be opened, and that a formal return will not be issued at the end of the tax year.

In cases where the only reason for issuing a SA Return was for reduced age allowance and it is clear that full age allowance will be due up to the date of death, an informal calculation can be accepted without requiring the completion of the SA Return.

In SA cases where the Personal Representative completes the income and allowances page on the R27, or provides a similar statement and it is possible for us to finalise the liability on that information.

This will be in the more straightforward cases where there is little or no liability (possibly because taxpayer died early in the tax year), and either there tax is to be repaid or if there is some more tax to pay it is settled informally by the Personal Representative.

Obtaining more information from the Personal Representative when issuing the R27. 

If because of the history of the case you consider that additional information may be needed to enable you to finalise the liability in year, you can request that information informally in the covering letter issued with the R27. This is because at that stage no SA Return or formal claim to repayment has been made.

However, such requests should only be made in those exceptional circumstances where it is absolutely essential that the additional information is obtained to enable the overall position to be finalised.

You may also need to ask the employer or pension provider for pay and tax details to the date of death, if this is the case you should issue form P43 with a covering letter.

You may for example be aware that a large repayment is due, or that the deceased`s personal affairs were complex, and that the distribution of the estate may be contested by family members. In cases such as these it is advisable to ask informally for the probate if the opportunity arises.

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 RIAT manager for further enquiry before any repayment is made.

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, and completion of a release form.