SAM90011 - Permanent cessation: permanent cessation: deceased cases (Action Guide)

When dealing with a deceased case, follow steps 1 - 31 below, as appropriate. The guide is presented as follows

Initial action - SA only cases Steps 1 - 8
Initial action - PAYE / SA linked cases Steps 9 - 13
Action where early settlement requested Steps 14 - 16
Action upon receipt of instructions from nominated Officer Steps 17 - 20
Officer action where early settlement requested Steps 21 - 24
Deceased signal set in error Steps 25 - 31

For details of how to access any of the SA functions, select ‘Index Of Functions’ on the left of the screen.

Initial action - SA only cases

1. Use function AMEND TAXPAYER SIGNALS to set
 
  • The Manual Return signal
 
  • The Last SA Return Required For Year Ending 5 April signal to the tax year in which death has occurred
 
  • The PCA Signal
 
  • The SA Entry / Exit Letter Inhibited signal to ‘Y’
2. Check whether the annual selection process has already taken place, if it has
 
  • Write to the spouse / civil partner / relative expressing your sympathies and to explain that it is unfortunately too late to stop the issue of a return in the name of the deceased in April but when the return is received it can be destroyed. Advise that it is necessary to issue a further return to the personal representative of the deceased in order to finalise the deceased’s tax affairs
 
  • Prepare a return manually, addressed to the personal representative to be issued at the bulk issue date
3. Use TBS function AMEND TAXPAYER DESIGNATORY DETAILS to enter
 
  • ‘Y’ in the Deceased field
 
  • The date of death (if known)
  Note: This function will, where no capacity role currently exists, create a capacity role of Personal Representatives.
  If the name and address of the executor(s) / administrator(s) is known
 
  • Use TBS function AMEND CAPACITOR DETAILS to cease the capacity role of Personal Representatives set up by the computer
     
    And
 
  • Use TBS function AMEND CAPACITOR DETAILS to set up the capacity details of the executor(s) / administrator(s)
     
    Then
 
  • Use function MAINTAIN CAPACITY SUMMARY again to ensure that the correct capacity has been set up as the main capacity
     
    You might also need to
 
  • Use function MAINTAIN TRADE to enter
 
    • The date a trade source ceased
 
  • Use function AMEND PARTNER to enter
 
    • The date a partner source ceased
4. Use function AMEND TAXPAYER’S AGENT DETAILS to indicate that the agent on the SA record no longer acts for the deceased
  Note: If a personal representative wishes to appoint an agent (including the same one previously acting for the deceased) to act on their behalf, a new form 64-8 must be completed to replace the existing form completed by the taxpayer.
5. If it appears that a repayment may arise, issue a form R27 to the agent or personal representative. This form can also now be used in cases where a repayment may not be due (see AP4380 / AP4381)
6. If form R27 is not being issued, you may need to issue form 920. See TSEM7364 for more details
7. Send a report to HMRC Inheritance Tax Nottingham in appropriate circumstances. Detailed guidance is given at AP4384 / TSEM7286
8. Refer to the instructions at TSEM7352 onwards to consider any action you need to take regarding the administration period
  Note: The liability for the period of administration will be dealt with by one of the specialist offices within Specialist PT Trusts, where the total SA liability of the estate exceeds £10,000, or where other specific criteria are met (see AP4344 / TSEM7406 and TSEM7410)

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Initial action - PAYE / SA linked cases

  In the office holding the PAYE record
9. Follow steps 1 - 3 above
  Note: You may find that SA is already updated with the correct capacity information. Where there is a PAYE interest and the registrar has advised the Department of Work and Pensions of the date of death, the PAYE record will be noted and a signal passed to TBS immediately. The information will then pass to SA overnight
10. On the following day, check that overnight processing has completed the transfer of the SA record to the office dealing with the personal address
11. Use function MAINTAIN RESPONSIBLE OFFICE to
 
  • Transfer the SA record back to the office holding the PAYE record. Select the [Transfer] button and then enter the new office details
 
  • Inhibit Auto Move to prevent any further movement of the record. Select the [Auto Move] button to change the signal to ‘N’
  Note: Exceptionally, liaise with the office holding the SA record where an ongoing administration period may mean that it is better for the SA office to handle the case
12. Where an SA charge has previously been included in the code
 
  • Use function CREATE SUNDRY CHARGE (charge type ‘SA Stranded Underpayment’ to bring the charge back onto the SA record)
  Note: Further guidance is available at section ‘Transfer from PAYE to SA’, subject ‘SA Stranded Underpayments’ (SAM140030).
13. Follow steps 4 - 7 above

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Action where early settlement requested

14. Refer case to nominated Officer for authority to issue an in-year return. A Short Tax Return (SA200) should not be issued in such cases
 
  • Use function MAINTAIN TAXPAYER RETURN PROFILE to enter the supplementary pages required with the return
 
  • Pass the papers together with a blank SA return (and appropriate supplementary pages) suitably modified by amending
 
    • The dates to comply with the period for which the details of income and gains are required
 
    • The filing date
15. Upon receipt of authority from nominated Officer
 
  • Issue the modified SA return and supplementary pages together with normal enclosures and
 
  • Enter the date of issue in SA Notes
16. When the completed return is received, or the personal representative makes an informal return, that is on form R27 (page2)
 
  • Refer case to a nominated Officer for further instruction

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Action upon receipt of instructions from nominated Officer

17. Where the nominated Officer has instructed you to proceed with the case
 
  • Use function CREATE RETURN CHARGE to enter details of the return charge to be set up on the taxpayer’s SA record
 
  • Use function VIEW STATEMENT to check the payment position on the SA record
18. If a repayment is due and an overpayment is shown on the SA record
 
  • Use function ISSUE REPAYMENT FROM OVERPAID BALANCE
 
    • To repay the credit balance from the SA system. For more detailed information about repaying a credit balance see section ‘Issue Repayment’ (SAM110000 onwards)
19. Where the nominated Officer has instructed you to proceed with the case and there is additional liability
 
  • Issue a typed computation of liability accompanied by a payslip PS1(AZ) or PS1(BZ) to the agent or personal representative
     
    And
 
  • Request that payment is sent direct to the Banking Operations office
  Note: Determination of the taxpayer’s liability may still result in the agent or personal representative wishing to settle the outstanding liability at the normal due dates. Do not pursue payment. SA rules will apply.
20. Where the nominated Officer has instructed you not to proceed with the case
 
  • Follow their instructions

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Officer action where early settlement requested

21. If a case is submitted for authority to issue an in-year return, only provide authority where
 
  • You are satisfied that a request for early settlement has been made
 
  • The necessary manuscript amendments are made to the return
22. Upon receipt of a completed in-year return, or informal calculation (see AP4380), you should undertake a preliminary examination of the return / calculation to consider whether an enquiry is necessary
23. If an enquiry is not called for write to the agent or personal representative
 
  • Acknowledge receipt of the return / informal calculation
     
    And
 
  • In the case of a return include the sentence ‘I confirm that on the basis of the information contained in the return, I do not propose to make an enquiry’
 
  • In the case of an informal calculation, include the sentence ‘I confirm that on the basis of the information contained in the computation, I do not propose to make an enquiry or to require a SA return to be completed for the period to date of death.’
     
    Note: This will preclude the possibility of any future Section 9A enquiries in respect of the period covered by the return / informal calculation
 
  • Give instructions to calculate the taxpayer’s liability
     
    Note: Where estimated P11D information is used it should be made clear to the personal representatives that calculation of the liability can only be regarded as provisional until the actual figures are known
 
  • Include the sentence ‘However, you have included the following estimates in your return / computation............Please let me know the actual figures as soon as they are known’
  The same procedures may be followed where the return has been issued at the end of the year in the normal way but the agent or personal representative is seeking early finality
24. If an enquiry is necessary
 
  • Inform the caseworker that he / she should not proceed with this case
 
  • Make arrangements for enquiries in accordance with office procedures. See section ‘Risk and Enquiry’ ((This text has been withheld because of exemptions in the Freedom of Information Act 2000) onwards)

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Deceased signal set in error

25. Use function AMEND TAXPAYER SIGNALS to unset 
 
  • The Manual Return signal
 
  • The Last SA Return Required For Year Ending 5 April signal (which will have been set to the tax year in which death has occurred)
 
  • The PCA Signal
 
  • The SA Entry / Exit Letter Inhibited signal
26. If a letter has been issued in accordance with step 2 above, write to the spouse / civil partner / relative apologising for the error
 
  • Recall the manually prepare return addressed to the personal representative to be issued at the bulk issue date
27. Use TBS function AMEND TAXPAYER DESIGNATORY DETAILS to enter ‘N’ in the Deceased field
 
  • The next day, check that the SA record has been updated. If the SA record has not been updated, check again the following day
 
  • Where 5 or more days elapse and ‘personal representative’ is still shown as a capacity role on the SA record
 
    • Send an email to SA, Mixed Records (PT Operations), giving the UTR, NINO and surname together with a precise explanation of the TBS/SA mismatch. The title of the email should be ‘Designatory Mismatch’
28.
  • Use function MAINTAIN TRADE to remove the trade source ceased date
29.
  • Use function AMEND PARTNER to remove the date partner source ceased date
30.
  • Use function AMEND TAXPAYER’S AGENT DETAILS to reinstate the agent details as indicated on SA notes.
31. For linked SA/PAYE cases follow PAYE103015 and unset the deceased indicator on NPS

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