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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
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Deceased persons: small estates: issuing returns

Issuing a SA Return

Network offices should not issue Self Assessment returns to estates.

The only exceptions will be cases where there is, for example, an open enquiry into the affairs of the deceased and the office handling the enquiry has agreed with HMRC Trusts & Estates Edinburgh that they should also take responsibility for the estate.

Informal payments

The majority of estates will be straightforward, with tax liabilities (if any) of less than £10,000. In such cases, personal representatives may make an informal one-off payment to cover the liability of the estate

Further guidance on the use of informal payments is at TSEM7410.

Responsible Office - special cases

In the majority of cases the office that dealt with the deceased’s lifetime affairs will retain responsibility for dealing with the liability of the deceased’s estate. 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 to this general rule 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 under the terms of the deceased person’s will, or the rules of intestacy
* the relevant HMRC Trusts & Estates Office ([TSEM1420](https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/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 UK 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 (i.e. the personal representatives have indicated that they will receive untaxed income in excess of £50,000), or the case is regarded as complex ([TSEM7376](https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem7376)), HMRC Trusts& Estates Edinburgh will take responsibility for it (if it is unclear whether or not the total liability will exceed £10,000, you should assume that it does not).