If you are the personal representative (PR) ie the executor or administrator, you may have to complete a tax return for the period after the date of death if the tax position of the estate is complex or if the tax liability is significant via a Trust and Estate Tax return.
From 24/25, if the estate’s income from any sources is less than £500 for every tax year, you do not need to report the estate to HMRC.
Reporting on ‘Simple’ estates
You can report tax owend to HMRC simply by writing to HMRC as ‘informal arrangements‘ if all of the following apply:
- the estate was valued at less than £2.5 million when the person died
- the total Income Tax and Capital Gains Tax due is less than £10,000
- you did not sell more than £500,000 worth of assets in any single tax year during the administration period.
Reporting on ‘complex’ estates
If you cannot use informal arrangements you must register the estate online and send a Self Assessment tax return for the estate.
After you’ve registered an estate
HMRC will send you a UTR for the estate within 15 working days. Use this to either:
- fill in a Trust and Estate Tax Return (form SA900) and post it to HMRC by the 31 October of the following tax year
- send a return online using tax software that supports SA900 reporting by 31 January of the following tax year
You must pay any tax due by the next 31 January following the tax year in your return (the same deadline as for sending a return online).