Dealing with the estate of someone who's died
Reporting an estate’s income to HMRC
You may need to send information to HM Revenue and Customs (HMRC) about the estate’s income from the day after the death until the date everything has been passed on to beneficiaries (the ‘administration period’).
What you need to send depends on:
- the value of the estate
- how much income it generated during this time
- if there was any tax to pay
When you do not need to report the estate
Up to 5 April 2024, if the only income the estate received during the administration period was from bank account interest which was less than £500, you do not need to report the estate to HMRC.
From 6 April 2024, if the estate’s income from any sources is less than £500, you do not need to report the estate to HMRC.
The £500 tax-free amount applies:
- for every tax year of the administration period, but you cannot carry over unused amounts from one year to the next
- to all types of income, except ISAs, which continue to be exempt from Income Tax or Capital Gains until the estate is closed or up to 3 years after the person’s death
Reporting on ‘simple’ estates
Report tax owed in the administration period simply by writing to HMRC (known 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
To report the estate send a letter to HMRC at the end of the administration period, including:
- your name, address and phone number
- the name, address, National Insurance number, and Unique Taxpayer Reference (UTR) of the person who died
- any Income Tax and Capital Gains Tax still due for the whole administration period
- any Income Tax and Capital Gains Tax you have reported and paid during the administration period, for example if you sold property
Pay As You Earn and Self Assessment
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HMRC will then send you details on how to pay any tax the estate owes.
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.
There are different processes for completing a Self Assessment tax return for income earned before the death or an Inheritance Tax return.
You must register by 5 October after the tax year you’re sending a return for.
For example, to send a return for the 2023 to 2024 tax year (ending 5 April 2024) you must register by 5 October 2024.
To register an estate you’ll need:
- to make a Government Gateway account as an ‘Organisation’ - you can create this before you sign in for the first time
- an email address
- your details, including your National Insurance number or passport number
- the details of the person who died, including their National Insurance number
You need a separate Government Gateway user ID for each estate you register.
If you’re an agent, you’ll need to use your agent services account. You’ll need permission from the personal representative to access the estate details.
Once you register, you can manage information about the estate.
Sign in to your account to:
- update your details
- update the estate’s details
- appoint an agent
- close the estate once it has been distributed
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).