TSEM7406 - Deceased persons: small estates: issuing returns
Issue of SA Returns
Network offices should not issue Self Assessment return to
estates.
The only exceptions will be cases where there is, for
example, an open enquiry into the affairs of the deceased and the
office handling the enquiry has agreed with HMRC Trusts Edinburgh
that they should also take responsibility for the estate.
Informal payments
The majority of estates will be straightforward, with tax
liabilities (if any) of less than £10,000. In such cases,
personal representatives may make an informal one-off payment to
cover the liability of the estate
Further guidance on the use of informal payments is at
TSEM7410.
Responsible Office – special cases
In the majority of cases the office that dealt with the
deceased’s lifetime affairs will retain responsibility for
dealing with the liability of the deceased’s estate.
There are exceptions to this general rule where the estate
will be dealt with by HMRC Trusts. These are:
- Any case where a trust has been created under the terms of the
deceased person’s will, or the rules of intestacy
- the relevant HMRC Trusts Office ( TSEM1420) will normally be responsible for the tax affairs of the estate, and form 980 should be issued to the appropriate office
- if, however, the trust is non-resident, CAR Residency will be responsible for it.
- If no trust is created under the terms of the deceased
person’s will or the rules of intestacy
- if the deceased’s lifetime tax affairs were dealt with by Public Department 1, that office will retain responsibility
- if the deceased was a Lloyds underwriter, West Yorks Personal Tax Unit will be responsible for the taxation of the estate
- if the personal representative is a UK bank or other financial institution, HMRC Trusts Edinburgh will be responsible for the estate
- if no trust has been created but the administration period tax liability is over £10,000 (i.e. the personal representatives have indicated that they will receive untaxed income in excess of £50,000), or the case is regarded as complex ( TSEM7376), HMRC Trusts Edinburgh will take responsibility for it (if it is unclear whether the liability will exceed £10,000 or not, you should assume that it does not).
