The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Estate accounts give a linear account of the process of the administration. The account begins with a list of everything the deceased owned at the date of death, and goes on to show how the assets have been realised, expenses paid, and the value distributed to beneficiaries. The following sections describe the customary elements of a set of estate accounts. It is recommended that this guidance note is read in conjunction with the fictional Estate accounts example, which illustrates the layout and presentation.
The synopsis summarises the provisions of the will. Where the will or intestacy has been altered by an instrument of variation, or where legacies have lapsed it may detail the changes. Alternatively, it may just summarise the distribution of the estate as it turned out. The accountant will need to judge the degree of detail required by the users. The synopsis will state the names of the testator, the executors and advisers. It should give the following relevant dates:
date of will
date of death
date of probate
The balance sheet presents the position at the accounting date. It shows the estate capital plus income (which is the amount owed to beneficiaries) represented by assets less liabilities. When the administration is complete, it will show the amounts due to named beneficiaries represented by cash. The full set of estate accounts tells the story of the administration and calculates the amounts due to beneficiaries. The balance sheet reconciles the calculation to the cash or assets held.
The accounts should provide, as a starting point, a list of all the deceased's assets and liabilities at date of death. It will mirror the free estate section of the inheritance tax account (IHT 400 or IHT 205). It will not include joint property (see below), or property in which the deceased had an interest in possession (settled property) as these assets are not under the control of the executors or governed
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
Time for paymentTwo statutory rules apply on death:•tax is ‘due’ six months after the end of the month of death and carries interest from the ‘due’ date until paidThere is a possibility of payment by instalments, but this applies to certain types of property only ― see the ‘Availability of
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.