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HMRC internal manual

Capital Gains Manual

Death and Personal Representatives: Period of administration and ascertainment of residue: Personal representatives: confusion over terminology

Even where ascertainment of residue marks the end of the administration period for Capital Gains Tax purposes, assets may remain in the hands of the personal representatives after that date. They may have to carry out administrative acts regarding transfer of assets to legatees. In some cases they may sell assets. If so they will be doing this as bare trustees for the legatees. Personal representatives and their agents sometimes regard these acts as forming part of the period of administration. This may lead to confusion when references are made to the period of administration.

Because of the possible confusion it is important to establish precisely what is meant when a reference is made to a period of administration. From HMRC’s side we can try to avoid this confusion for the majority of cases by referring to events as falling before or after residue has been ascertained rather than simply referring to the period of administration.