Backdating capital gains

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The personal representative or administrator of the estate is normally responsible for working out how much Inheritance Tax is due.

They’re also responsible for ensuring that this is paid from money in the estate, or from the sale of assets.

Any income received after the person’s death, such as rent from a property or income from the person’s business, ‘belongs’ to their estate.

Usually this type of income doesn’t have tax deducted before it’s received.

You might need to complete a self assessment tax return if the deceased normally did one.

If you’ve used the Tell Us Once service, HMRC will tell you if you need to fill in a Self Assessment tax return.

How much Income Tax the deceased’s estate needs to pay depends on where the income is from.If there is rental income from a property in the UK, you’ll need to complete a tax return for the deceased’s estate.Income from rent on a property abroad, or foreign business profit and shareholdings won’t have UK tax automatically deducted.If you’re not sure if the deceased regularly submitted a tax return, you should check with HMRC if they did so, and when they last submitted a return.You’ll need to have the deceased’s National Insurance number to hand when contacting HMRC.

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