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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
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Deceased persons: using form 920 information

Note

The guidance relating to processes on this page of the TSEM is suspended for the time being as it is under review. This is due to recent changes made to the form R27 and other process changes introduced by the bereavement project. If you have been given other local instructions on the process to follow please refer to these.

In the majority of cases, the deceased individual’s tax office will be responsible for dealing with any tax liability for the administration period. This includes cases where the deceased’s lifetime tax affairs were dealt with by Public Department (PD) 1 - that office will retain responsibility.

The exceptions are:

  1. If the deceased was a Lloyds underwriter, High Net Worth Unit (HNWU) Bradford will be responsible for the taxation of the estate.
  2. Any case where a trust has been created either under the terms of the deceased person’s will, or the rules of intestacy:
  • The relevant HMRC Trusts & Estates Office (TSEM1420) will normally be responsible for the tax affairs of the estate, and form 980 should be issued to the appropriate office.
  1. Any other case where no trust has been created under the terms of the deceased person’s will or the rules of intestacy:
  • if the personal representative is a bank or other financial institution, HMRC Trusts & Estates Edinburgh will be responsible for the estate.
  • if the administration period tax liability is over £10,000 (for example because the personal representatives have indicated that they will receive untaxed income in excess of £50,000), or the case is regarded as complex (TSEM7376), HMRC Trusts & Estates Edinburgh will take responsibility for it. If it is unclear whether the total Self Assessment liability will exceed £10,000 or not, you should assume that it does not).

A flow chart (Word 38KB) shows this process.

Responsible office unknown

Occasionally the responsible office is unknown, but it is clear that liability will arise. If so, the office dealing with the address of the first-named personal representative should assume responsibility for dealing with the administration period liability, unless the case is one where HMRC Trusts & Estates Edinburgh has responsibility.

If that address is outside the United Kingdom, use the address of the agent who acted on behalf of the deceased.

Liability to the date of death

It is important to finalise all matters up to the date of death. The deceased’s responsible office (TSEM7204) should always do this.