The following Trusts and Inheritance Tax guidance note Produced by Tolley in association with Higgs & Sons provides comprehensive and up to date tax information covering:
When a person dies, their personal representatives have a duty to administer their estate. This includes ascertaining the details of the assets and liabilities in the estate at the person’s date of death, including any liabilities to income tax or capital gains tax in respect of transactions occurring before death. They will then need to complete an inheritance tax account, pay any inheritance tax due, sign a statement of truth and apply for the grant of representation which is proof of the personal representatives’ legal authority to perform the role.
Once the grant is obtained the personal representatives have a duty to collect all of the assets, settle the liabilities of the estate (including income tax and capital gains tax charges which have arisen during the period of administration), agree the estate figures with HMRC for inheritance tax purposes and then distribute the remaining estate in accordance with either the terms of the Will or, where there is none, the rules of intestacy. It is worth noting now that if the liabilities of the estate exceed the assets then the estate is insolvent and great care should be taken in the administration of the estate. If the estate is solvent, the personal representatives have a duty to distribute the balance to the beneficiaries.
In light of this, duty it is essential that the personal representatives keep an accurate record of the relevant estate information which is usually done by preparing estate accounts. Please refer to the Stewardship of funds and Requirement for estate accounts guidance notes for more information.
Before the administration process can begin, it is important to:
find out if there is a Will ― check with the deceased’s solicitor or bank and perhaps use a search provider as set out in more detail below
identify the personal representatives
identify the beneficiaries
At the outset it is extremely important that the original Will is obtained with any original codicils or other documents which
**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
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
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
Preparatory workBefore completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.