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HMRC internal manual

Capital Gains Manual

Death and Personal Representatives: Personal representatives and their liabilities: Personal representatives: assessing gains: Examples

Examples

The three children of Mrs A deceased, X, Y and Z are appointed as her personal representatives.

If all three of the children are resident or ordinarily resident in the United Kingdom gains chargeable on personal representatives can be assessed on any of the following combinations as personal representatives of Mrs A deceased.

X alone; Y alone; Z alone;

X and Y; X and Z; Y and Z;

X, Y and Z.

However if Z is neither resident nor ordinarily resident in the United Kingdom then it is only permissible to assess gains chargeable on the personal representatives on one of the following combinations as personal representatives of Mrs A deceased.

X alone; Y alone;

X and Y

X, Y and Z.

Mr B was resident, and domiciled in the UK. Prior to his death on 31 December 2009 he owned substantial amounts of property in Canada in addition to the assets he owned in the UK. He left two valid wills.

The first will dealt with his assets in the UK and named E and F as his executors for that estate. Both E and F were resident in the UK and accepted appointment as executors.

The second will dealt with his assets in Canada and named G and H as his executors for that estate. Both G and H were resident and ordinarily resident in Canada. Again both accepted appointment as executors.

The administration of both the UK and Canadian estates was still in progress during the whole of 2010-11. Residue had not been ascertained for either estate. During that year the Canadian executors realised chargeable gains. These gains may be assessed on any of the following combinations of personal representatives of Mr B deceased.

E alone; F alone;

E & F

E, F, G & H

Assessments on the following combinations are not permitted.

E & G; E & H; F & G; F & H;

E, G & H; F, G & H; E, F & G; E, F & H.

The liability arising on the assessment of 2010-11 capital gains was settled during 2011-12. Later in that year the executors of the English will ascertained residue and distributed the English assets to the legatees of the relevant will. However the executors of the Canadian will were still unable to ascertain residue throughout 2011-12 and 2012-13. During 2012-13 they realised further capital gains. As the executors of the English will had by this time ceased to be personal representatives the assessment should be made on

G & H as personal representatives of Mr A deceased

It is not permissible to assess either G or H alone because any assessment naming a person who is neither resident nor ordinarily resident must be made on all the personal representatives.