Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
, see all updates

Permanent cessation: permanent cessation: deceased cases

Introduction
Notification of the customers death
Tell Us Once and W016 process
Updating the record
Personal Representatives
Deceased SA customers with No SA criteria
Deceased SA customers with SA criteria
Review of other business interests
Date of death after return selection
Consideration for submission to Technical Officer
Extending the filing period
Late filing penalties
Agents
Filing online
Period of administration
Special Cases
Deceased Nominated Partner
Concessional dates for interest
Returns outstanding for earlier years
Estimated taxable benefits
Student Loan cases
Deceased signal set in error

Introduction

For tax years up to, and including, 2011-12, early settlement of the final year’s liability was not offered as a matter of course. In order to settle the final year’s liability before the end of the tax year, a specific request for early settlement was required and considered by an Inspector before action was taken.

However, the process was revised for tax years 2012-13 onwards and early settlement offered as a matter of course. To facilitate this, a form R27 was issued to the address of the deceased to obtain the name of the Personal Representative (PR) (if not already known) and enable the Personal Representative to declare any trust and / or income received during the period of administration. When received, the information given was used to update the record of the deceased and also the surviving spouse’s record (if there is one).

From 6 April 2014, the process was revised further for the tax year 2014-15 onwards. From this date, a formal in-year Return will be served before 6 April, where possible, for all cases where details of a Personal Representative are held and there is SA criteria. This will be the only return served for the period 6 April to the date of death. The date of issue will be recorded on the record so that penalties can be charged automatically if the Return is not sent back by the standard filing due dates.

From October 2014, the form R27 was decommissioned. Personal Representative details are now requested using SEES forms P1000(SA) and P1003(SA) and the customer can either complete the details requested, or telephone the Contact Centre (PR details can now be accepted over the phone from June 2014). Consideration will be given to how the record can be cleared and where there is SA criteria, returns will be issued with SEES form P1004(SA).

Notification of the customers death

The notification of a customer’s death can be received from a number of sources such as

  • The customers surviving spouse or neighbour/friend
  • The Personal Representative
  • Department of Work and Pensions (DWP)
  • ‘Tell Us Once’ process

Top of page

Tell Us Once and W016 process

When the death is registered with the Local Authority Registrar, the person registering the death is given the option of using a facility which notifies other government departments, such as HMRC, DWP and the Department of Vehicle Licensing Authority, at the same time. This means that all appropriate government departments will be made aware of the death and take the appropriate action to note their records.

When HMRC are notified of someone’s death, that information is passed to other government departments through the Citizens Identification Framework so that the informant does not have to advise every department separately. When we are notified through ‘Tell Us Once’ these cases will be worked within 30 days following the notification of the date of death and they will not require any further review. TUO cases must transfer to OUID 201400 and updating the Sources screens must be done manually.

From October 2014, for customers not notified to us through the ‘Tell us Once’ process, an entry will be created on the new ‘W016 - Deceased Manual issue of return worklist’ 30 days after the death is notified to us, for action to update and clear the record. For further information, see ‘Updating the Record’ below and subject ‘W016 - Manual issue of return’ at SAM71094.

Top of page

Updating the record

These actions will either be taken following notification of the customers death under the Tell Us Once process or following actions from the W016 worklist entries.

When informed of the death of a customer, the SA record should be updated as follows:-

  • The date of death (using the Taxpayer Business Service (TBS) (or using NPS if an NPS record is held showing the customer’s UTR).

If using TBS, use TBS function AMEND TAXPAYER DESIGNATORY DETAILS to enter

* ‘Y’ in the Deceased field
* The date of death (if known)

Unset the special signals for

* Audio
* Braille
* Large Print
  • Which special outputs are no longer required (using TBS or using NPS if an NPS record is held showing the customer’s UTR). Note: Do not remove the Welsh signal, if set. This will be removed by the Welsh Unit later if the Personal Representative indicates that output in Welsh is no longer appropriate. If the PR indicates that future correspondence should be in English, remove the Welsh signal but if the PR wishes future correspondence to be in Welsh, refer the case to the Welsh Unit using the mailbox address ‘Cymraeg, Gwasanaeth (PT Operations - Welsh language Team).
  • This function will, if no capacity role exists, create a capacity role of Personal Representative. If the details are held, update the details of the Personal Representative (PR) using TBS (or using NPS if an NPS record is held showing the customer’s UTR). Note: Details of the PR can be received from an SA return, a signed letter from the PR or form such as a form SA1000(SA), a response to an APP05 letter, ‘Tell Us Once’ or from a Grant of Probate or telephone call to Contact centres
  • To inhibit the statement temporarily where the PR is unknown. When the record is updated with details of the PR, the inhibition signal should be lifted
  • Set the ‘Final Return Year’ signal after the review of SA criteria has been made in ‘Signals’ on the SA record. Note: See ‘Deceased customers with NPS records’ below for more information
  • Review the Priority Collection Action signal

    • If the PCA signal is ‘N’ and the date of death is more than 2 months ago, check SA Notes for a note made by DMB since the date of death

    • If a note has been made by DMB, take no further action
    • If no note has been made and the date of death is within the preceding 2 months, set the PCA signal to ‘Y’
  • Update the Sources screen where there is a self employment/partnership source in all ‘Tell us Once’ cases’-‘this will be dealt with automatically for WO16 cases
  • Remove any existing Agent and/or Power of Attorney information from the record by using function AMEND TAXPAYERS DETAILS and selecting the ‘ceased’ box. Note: Existing authority ceases upon death
  • To make sure any other systems are updated, complete the Contact Centre Agent Removal Form, which can be found by selecting Excel, SEES forms then xmls forms and emailing it to the CAAT mailbox. Note: Any Contact Centre can be selected for the purpose of completing this form and all systems except VAT will be updated
  • Where an SA Charge has been coded in the year following the date of death, use function CREATE SUNDRY CHARGE, charge type ‘SA Stranded Underpayment’, to put the charge back onto the SA Record
  • Where an SA Charge has been coded in the year of death, include this within your formal calculation for that year
  • Check the Sources record for the customer to check if the deceased customer acted as an agent prior to the date of death and if so, advise the Central Agent Authorisation Team(CAAT) of the death, and the following information, in writing

    • The customers name and UTR
    • Whether they were a sole trader, director or partner
    • If the deceased was a partner, also advise the partnership UTR, the number of partners in the partnership and the partners UTR’s. If there are more than 4 partners, you need only state the UTR’s of three partners

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • Review the penalty position to see if a penalty has been charged which needs attention. For further information, see subject ‘Penalties’, (SAM61200 onwards)
  • Transfer the record to the Bereavement Unit OUID 201400 in TUO cases. Note: Where the case is linked to an NPS record, the record must not be transferred until the day after the Taxpayer Signals have been amended

Top of page

Personal Representatives

The computer will automatically set up a capacity role of ‘Personal Representatives…’ when

  • The Deceased signal is set to ‘Y’ in TBS function AMEND TAXPAYER DESIGNATORY DETAILS

And

  • There is no existing live capacity role

This ensures that no output is addressed to the deceased taxpayer. Any output will be addressed to ‘Personal Representatives of . . . . . . . Decd’ in these circumstances.

The name and address of the PR dealing with the estate of the deceased cannot be updated on TBS (or NPS if an NPS record is held showing the customers UTR), and in turn the ‘Capacitor’ record on SA, until the details are confirmed by one of the following methods

  • Signed SA Return
  • A signed letter from the PR
  • A completed SEES form P1000(SA) or P1003(SA) or APP05 letter
  • A ‘Tell Us Once’ notification
  • Sight of the Grant of Probate
  • Contact by the PR with a Contact Centre

If notification of the PR has been received by any other method, make an SA Note of those details but do not update the record using TBS (or NPS if an NPS record is held showing the customers UTR). For example, a form 64-8 cannot be used to update capacities.

Top of page

Deceased SA customers with No SA criteria

When this information is received in HMRC, the SA record should be reviewed to check if SA criteria exists for the year of death, and for any earlier years where SA returns are outstanding.

Where you identify that there is no SA criteria for a year where a return is outstanding, including the year of death, and there is an NPS record, the liability can be dealt with using NPS without the need for a return to be completed. You should follow the guidance at SAM101092 and SAM120116 to make the record dormant and to set the ‘No SA criteria’ indicator for the year(s) involved, and issue the P1003(SA) letter.

Where SA returns are not required and a credit is shown on the statement you should arrange to repay it and advise the PR of your actions in the letter. Likewise, if the tax is outstanding, you should attach a copy of ‘today’s statement’ and a payslip for their information.

Top of page

Deceased SA customers with SA criteria

In the year of death, even though SA criteria exists, in certain circumstances it may not be necessary to issue a return in order to settle the liability. In these cases the income can be apportioned using information from the last return held, and entered on the NPS record to allow NPS to reconcile the year. These cases will be where the following types of income have been received:-

  • Income from Property
  • Directors income
  • Foster carers
  • Taxable income under £100,000  (after apportioning the income for the year to the date death)
  • High Income Benefit Charge under £48,000 (after apportioning the income to the date of death. For more information refer to PAYE 130030 – IABD
  • Coding restrictions
  • Income from trust or settlement from a deceased estate. For more information, refer to PAYE130080 – IABD
  • Untaxed interest (after apportioning the income for the year to the date death)
  • PAYE Underpayments collectible through Self Assessment
  • State Pension exceeds Personal allowances
  • Investment income over £10,000 (taxed)

 

  •  Dividends (after apportioning the income for the year to the date death)
  • Interest – Update IABD with Nil figure

If the year of death is cleared in this way, the Final Return Year signal should be set to the previous year to close the SA record and the following SA Note made on the record:

`No SA ITR has been issued for the year of death even though SA criteria may exist. PR has been advised to contact us should they prefer to complete a return’

Note: A return will still be required where Payments on Account have been set for the year and in all other cases.

Where the PR is known, a SEES form P1004(SA) will be issued suitably amended in respect of whether a return is tobe issued or not. If not, the letter will tell the PR that we intend to review the year without a return, but will advise that if the PR wishes to complete a return, they should advise us as soon as possible. Otherwise, the P1004(SA) will be issued with the return(s) and when no PR is known the SEES form P1000(SA) will be issued to obtain the PR’s details so the return(s) can be issued.

The NPS record will also need to be reviewed to see if any NPS years for the deceased have not yet been reconciled.

How to issue a return

Use function MAINTAIN TAXPAYER RETURN PROFILE to

  • Enter details of the supplementary pages to be sent with the return

Use function RECORD DATE OF CLERICAL ISSUE to

  • Record the date of issue in the ‘Return Issued Date’ box

In the drop down menu next to the ‘Failure to Notify’ box

  • Select ‘Not Failure to Notify’

In the ‘Year Ending 5 April’ box

  • Select the appropriate tax year
  • Select [OK] and send the screen

Prepare a paper return for issue by

  • Amending the front of the return, and each supplementary page, to clearly show the period from 6 April to the date of death
  • Entering the date by which the return should be filed

Then

  • Make an SA Note of the action taken

Note: Before issuing the return you should check that there is no open enquiry or reason in SA Notes why an early settlement return should not be issued.

Note: The return, which must be a Main Return (SA100) must be addressed to a named person to be considered correctly served. For example, Mr A N Other as Personal representative of ………..Deceased.

Where the deceased was a nominated partner in partnership and the Partnership return was not submitted before the date of death, follow the guidance at SAM120040 under ‘Duplicate return issue’.

For further information of action to take, see Deceased In-year Return and Deceased Return Capture.

Top of page

Review of other business interests

When we have PR details at the first notification of death, a review will be undertaken to determine if the deceased customer may have had any other business interests, for example, outstanding debts, outstanding issues with NIC, Employers or VAT. If so, telephone contact should be made with those departments to advise of the date of death and to determine if there are any outstanding issues. If there are any outstanding issues, we will provide the PR with information regarding the dedicated helplines in the SEES form issued.

The SEES forms P1000(SA) and P1004(SA) provide boxes to enable the PR to supply Employer or VAT references. If completed, and we were previously unable to trace those business interests, details of the date of death together with the appropriate references, will be sent to these departments. Those departments will then be able to make contact with the PR if appropriate.

Top of page

Date of death after return selection

You may be notified that a taxpayer has died between the automatic selection process taking place in February and the date of the bulk issue in April. In these circumstances you should send SEES form P1004(SA) letter to the Personal Representative, the surviving spouse, civil partner or next of kin, using the appropriate option to explain that unfortunately it is too late to stop the issue of a return in the name of their deceased spouse / civil partner / relative in April, and that this return / notice to file can be destroyed when received, and that a further return may be issued, addressed to the personal representative of the deceased, in order to finalise the deceased tax affairs.

Top of page

Consideration for submission to Technical Officer

Where the completed return is received you should consider the following points and where you are unsure or in doubt whether to proceed, submit the case to a Technical Band O.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

    • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Where you are satisfied you can proceed, take the following action:

Check TBS to see if an election for Marriage Allowance is in place. This will be visible from the ‘Marriage Allowance Details’ button on the ‘View Taxpayer Summary Details’ screen

  • Follow the instructions for the appropriate scenario:
  •  

TBS shows MA relationship is in place – customer is Transferor -

  • The customer is entitled to the reduced personal allowance in the SA calculation. For 2015-2016, you must reduce the Personal allowance (PA) by £1060. For future years, it will be 10% of the PA. Calculate the liability using the SEES calculator and select ‘MAT OUT’ at REL2
  •  

TBS shows MA relationship is in place – customer is Recipient -

  • The customer is entitled to a credit of a maximum of £1060 x 20% = £212 for 2015-2016.For future years, it will be 10% of the PA amount. The credit must be limited to the customer’s tax liability. For example, if the liability is £50 then the MA credit should be limited to £50. Calculate the liability using the SEES calculator and select ‘MAT IN’ at REL2.

Note: Where a Marriage Allowance election exists, on the death of the Recipient, the Transferor’s Personal Allowance is reinstated to the full amount. That is, when the recipient dies, the transferred credit is taken into account, but the transferor’s PA is reinstated to the full level. The system will do this automatically.

TBS does not show MA relationship is in place for the year and no relationship exists for previous year – Personal Representative wishes to make election

  • The election is not allowable. Legislation at ITA 2007 55C provides that the customer must be married at the time of making the election

 

TBS does not show MA relationship is in place for the year, relationship exists for previous year and no election is made on the return

  • In this scenario, we will not apply Marriage Allowance

 

Personal Rep/agent states that the Transferor had registered an interest to apply on GOV.UK in the period April 2015 to September 2015 but died before an invitation to apply was issued

  • In this scenario we will apply Marriage Allowance

The Transferor died before September 2015 and did not register their interest to apply on GOV.UK because they were unable to use digital services

  • In this scenario we will not apply Marriage Allowance

Application made on tax return but Recipient deceased prior to application being made

  • In this scenario we will not apply Marriage Allowance.  An application to transfer cannot be made if the Recipient was deceased before the transfer was made

When this review has been made, follow the steps below:-

  • Where you are dealing with the return before the end of the year of death use function CREATE RETURN CHARGE to enter details of the return charge on the customers SA record.
  • Where you are dealing with the return after the end of the year, use LDC to capture the return information
  • Use function VIEW STATEMENT to check the subsequent repayment position

Where additional liability is due, send a PS1 (BZ) payslip to the PR or Agent with the appropriate letter. Where a form R27 has been received, use letter OCAD36A, available from Forms and Letters on SEES. Where an in-year return has been received, use letter OCAD65 or OCA57, OCAD59 (repayment set off) or OCAD60 (Difference in calculation – repayment due) where appropriate.

If an overpayment is shown on the record and a repayment is due,

  • Where there are no outstanding tax returns for earlier year’s,

    • Use function ISSUE REPAYMENT FROM OVERPAID BALANCE to make repayment. For more information about repaying a credit balance, see subject ‘Issue Repayment’ at SAM110000 onwards

    • Where earlier years returns are outstanding, follow the guidance below

Where a request is received from the personal representative for confirmation that there is to be no enquiry, you should select the option within the final calculation letter (OCAD65 underpaid, OCAD66 overpaid, OCAD59 - repayment set off or OCAD60 -Difference in calculation – repayment due) where appropriate ) to the PR to advise him that ‘on the basis of the information contained in the ‘20XX-20XX’ tax return / completed P1000(SA)/P1003(SA) for the period to date of death, I do not propose to make an enquiry’.

Top of page

Extending the filing period

Where a tax return has been issued to the deceased customer before the date of death and is being reissued to a PR as a ‘Late Issue / Reissue return (SAM120040), a period of 7 days and 3 months is given for the PR to file the return, and the system is updated to show the new filing date. A reminder letter (OCAD69) will be issued after 2 months to advise the PR to contact us if he/she will be unable to file by the due date.

If the PR makes contact to say that he will not be able to file the return within that period, you should agree a reasonable date by which the return can be filed and amend the return due date for both the paper and online filing date to that date on the system.

The filing period may be extended by amending the filing due date for the appropriate year where the personal representatives satisfy HMRC that there is a reasonable excuse for not being able to file the SA return on time. The decision as to whether or not the filing period should be extended (and if so, by how much) is left to the discretion and judgement of the particular office. An SA Note must be made to explain that contact has been received from the PR and to note the reason why he/she is unable to file within the 7 day and 3 month period. Also issue SEES letter SA4 (PR more time for a return) to confirm the new filing due date and that the payment due date remains the same.

Where a filing period is extended, the personal representative(s) is/are expected to file the return by the amended filing due date. Note: An extended filing period does not change the due date for payment and this should be explained to the PR when he makes contact.

If the return is filed before the return filing due date, no late filing penalties will be applied. However, if the return has not been filed by the return filing due date, a late filing penalty will be chargeable.

If late filing penalties have been previously charged and cancelled, at the time the filing due date is extended, a BF for the new filing due date must be made because if the reissued return is late at the BF date, the relevant penalty must be charged manually. For further information, see subject ‘Manually raising a penalty’ (SAM61281) and the section regarding ‘Late filing penalties’ below.

Top of page

Late filing penalties

Where a taxpayer who has been served with a notice to file a return fails to comply with that notice and dies before the filing date, you should consider if the penalty (penalties) imposed before the date of death should be cancelled. This applies only to individuals and not Partnership penalties.

From 6 April 2014, for tax years 2012-13 onwards, any penalties for ‘in-date’ years (ignore out of date years) imposed on the deceased customer will need to be cancelled because we cannot show that the person on whom the notice was served has received the return.

When notified of the death you should

  • Cancel the penalty, where a late filing penalty has been imposed, using function AMEND FIXED PENALTIES. From April 2012, use function VIEW/CANCEL PENALTIES for penalties for tax years 2010-11 onwards. Note: Where there has been Compliance activity, before you take action, you should contact the Compliance Officer for advice.
  • Consider if future penalties should be inhibited using function VIEW/CONTROL PENALTIES. For example, where the PR’s details are not known. When they are received, the signal can be unset.
  • Issue a new return to the personal representatives, if known, as a ‘Late Issue/Reissue’ return. This will give the personal representative 7 days and 3 months to file the return
  • Record the date of issue of the new return on the SA record using function RECORD DATE OF CLERICAL ISSUE
  • Set a BF date to 2 months after the issue date and issue the reminder letter where the return has not been received and penalties have previously been cancelled on the original return issued to the deceased.
  • Set a BF date to the 7 days and 3 months filing date, plus one week, to check for receipt of the return and to manually impose late filing penalties if required. (For further information regarding interest, penalties and surcharge, see SAM61270 and SAM61280). Note: You do not need to raise manual penalties for any tax years 2009-10 and earlier. In these cases, make an SA Note to say penalties have not been raised because the tax year was 2009-10 or earlier.

The new return will have a filing date based on the date it was actually served on the personal representatives, and any late filing penalties will be based on that new date of service. This may be

  • 31 October following the end of the return year for a paper return, or 31 January following the end of the return year for an online return

Or

  • 7 days and 3 months after the date of issue

Note: Any late filing penalties previously cancelled which become chargeable in respect of the return being reissued to the PR will need to be manually entered on the taxpayer’s SA record using function CREATE SUNDRY CHARGE. Depending on which penalties need to be charged, it may be necessary to BF the case to the date each of those penalties become chargeable. For further information regarding the action required to manually impose late filing penalties see guidance at SAM61270 and SAM61280. If no penalties have previously been charged for the year, the system will automatically charge penalties based on the new filing date and no manual action is required.

For more detailed information about penalties, see section ‘Penalties’. For tax years 2009-10 and earlier, see SAM61000 onwards, and for tax years 2010-11 and later, see SAM61200 onwards.

Top of page

Agents

If a PR wishes to appoint an agent to act on their behalf (including the agent who acted for the deceased before the date of death), a new form 64-8 must be completed or the new agent information can be provided on form R27. Note: Any previously completed 64-8 will be invalid.

If a form 64-8 is received before the PR’s details have been recorded on the SA record, follow the 64-8 deceased flow chart within the Deceased Return Capture Action Guide link above . If there is no agent code for the agent stated or a friend/ family member/ voluntary organisation is noted as agent, you should make an SA Note of the details and refer to the 64-8 deceased flow chart.

Top of page

Filing online

A personal representative/executor can file a deceased person’s tax return online but when the date of death and the deceased signal is set on SA, any online enrolment for the deceased person is removed from the system. Therefore the personal representative will need to register and enrol for SA Online again, using the deceased person’s UTR, when they have been set up as capacitor in order to file the deceased persons return online. If there are no capacitor details shown in SA then the activation code will not be sent out. For further information, see subject ‘Set up taxpayer record: set up capacities’ (SAM100210). Note: If the name and address of the PR is correct, there is no requirement to amend the ‘Capacity Role’ unless specifically requested to do so but if the ‘Capacity Role’ is amended, you should send SEES letter SA837 to the PR to advise that he will have to enrol for SA Online again because this action removes the previous enrolment details from the system.

Top of page

Period of administration

Where a trust has been created either under the terms of the deceased persons will, or the rules of intestacy, the relevant HMRC Trust and Estates office will normally be responsible for the tax affairs of the estate, including the period of administration. See TSEM1420 for further information. Also where you identify the existence of a Trust, you should report the facts to the to the appropriate HMRC Trust office on form TRUSTREF2. For further information, see TSEM7366.

If there is no Trust and the form R27 or information provided within a letter/return indicates there is no income during the period of administration, any tax liability can be dealt with informally under the existing UTR if the conditions stated at TSEM7410 are met.

If you cannot deal with the income informally you should send a copy of the R27 to Edinburgh Trusts using SEES form TRUSTREF2.

Top of page

Special Cases

If the deceased customer dealt with by the High Net Worth Unit, Birmingham (HNWU) will deal with the liability to date of death.

If the deceased customer was a Lloyds Underwriter, Bradford High Net Worth Unit (HNWU) will deal with the liability to date of death, and be responsible for the taxation of the estate.

If the Personal Representative is a UK Bank or other financial institution, you should send a copy of the form R27 or information provided within a letter/return to Edinburgh Trusts using SEES form TRUSTREF2.

For further information, see the flowchart under TSEM7366.

There will be some exceptional cases, for example, an open enquiry into the affairs of the deceased, or the personal representative is not prepared to finalise a small liability informally. The office handling the enquiry or the small estate liability will need to agree with Specialist PT Trusts Edinburgh that they should also take responsibility for the period of administration and set up an SA record for the estate. For further details see TSEM7406.

For further details see subject ‘Permanent Cessation: Period Of Administration’ (SAM90030).

Top of page

Deceased Nominated Partner

Where the deceased was a nominated partner in a partnership and dies before the partnership return was submitted, the Personal Representative is not responsible for submission of the partnership return. For further information, see ‘Duplicate returns issue’ at SAM120040and ‘Nominated partner’ atSAM101290.

Top of page

Concessional dates for interest

If a taxpayer dies before a charge becomes due and the executors or administrators cannot pay the duty before they obtain probate or letters of administration, then Schedule 53, part 2, section 12 of the Finance Act 2009 applies and the relevant due date is the later of either

  • The normal due date

Or

  • 30 days from grant of probate or letters of administration inclusive

In such cases the reduction of interest is treated as a statutory amendment and any interest given up is regarded as a discharge.

For more detailed information about interest charges see section ‘Interest’ (SAM60000 onwards).

Top of page

Returns outstanding for earlier years

You should take action to establish if there is SA criteria and if not, the case can be dealt with through NPS. If returns are required, you can still create the final years return charge from the in-year return, and reissue the outstanding return(s), but you must make an SA Note of your action and advise the PR or Agent of the position. If there is a credit on the record, advise the PR or Agent that the repayment can be claimed but that the tax affairs cannot be finalised until the outstanding returns have been received.

Top of page

Estimated taxable benefits

The employer is not required to provide P11D information to the personal representatives until 6 July after the end of the relevant tax year. In most cases matters would be resolved by agreement between the employer and the personal representatives. However, where the personal representatives are unable to obtain P11D information from the employer they can include estimates of the taxable value of any benefits or expenses payment.

Where estimates are used it should be made clear to the personal representatives that calculation of the liability can only be regarded as provisional until the actual figures are known.

Top of page

Student Loan cases

If you receive a claim for early settlement and the taxpayer is a Student Loan Case, refer to the Collection of Student Loans (CSL) Manual on the Intranet for details of how to deal with the Student Loan.

Top of page

Deceased signal set in error

If you become aware, either by receipt of a letter or other contact, that the deceased signal has been set incorrectly, follow the guidance below to correct the record.

1. Use function AMEND TAXPAYER SIGNALS to unset the following signals
   
  * The Manual Return signal (if it has been set previously)
  * The Last SA Return Required for Year Ending 5 April signal
  * The PCA signal
  * The SA Entry/Exit Letter Inhibited signal
2. Consider if a return now needs to be issued and if any late filing penalties cancelled in error will need reinstating
  If a return is required and needs to be issued
  * Follow the guidance in subject ‘Issuing returns other than at bulk issue, (SAM120040 onwards)
  * Set a BF date for one week after the relevant filing date
  Note: If any penalties have been cancelled, the system will not automatically create a new penalty. Therefore you must review the case one week after the relevant filing date and if the return has not been received, you will need to calculate the penalty manually
  At the BF date, if the return is still outstanding
  * Create a miscellaneous penalty charge use function CREATE SUNDRY CHARGE For information about manually raising a penalty see SAM61281
  Note: Dependant on which penalties have been cancelled you may also need to review the case after the next date that a further penalty becomes due to see if you need to manually create a further miscellaneous penalty charge
3. Check the record to identify who we have written to regarding the fact that the records have been updated where the customer was believed to have died
  * Prepare and send SEES letter OCDA58 to the customer, and each person we may have contacted, apologising for the mistake
  * If a return has been manually prepared for issue to the Personal Representative at the bulk issue date , recall and destroy it
4. Use TBS function AMEND TAXPAYER DESIGNATORY DETAILS to enter ‘N’ in the Deceased field
  The following day
  * Check that the SA record has been updated. If not check again the following day
  Where 5 or more days elapse and the record has not been updated to remove ‘Personal Representative’ from the capacity role on the record
  * Send an e-mail to SA Mixed Records (PT Operations), giving the UTR, NINO and surname together with a precise explanation of the TBS/SA mismatch. The title of the email should be ‘Designatory Mismatch’
5. Use MAINTAIN TRADE to remove the ‘trade source ceased’ date
6. Use function AMEND PARTNER to remove the ‘date partner source ceased’ date
7. Use function AMEND TAXPAYERS AGENT DETAILS to reinstate the agent details as indicated on SA Notes
8. For linked SA/PAYE cases follow the relevant instruction for cases where the verified date of death is incorrect or the individual is not deceased but a verified date of death has been recorded, in PAYE103015