Income Tax and CGT Returns

Trusts Discussion
1

I was interested to know whether other probate practitioners prepare income tax and CGT returns, whether for the administration period or for the pre-death period, or whether they outsource such work to accountants. It has always been somewhat unclear to me how much of such work one should do as a solicitor.

2

I understand that unless its a Complex estate, you just say how much income Tax you consider is due and pay it.
Often if it is a complex estate, the deceased will have an accountant in any event so refer to them, or get Executor to do so.
Don’t get involved in CGT - refer to accountant.

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3

Thanks, Helen. That makes sense to me. Am interested to see if that is everyone’s approach.

4

We tend to let the accountant deal with pre-death, and then deal with post-death/admin return ourselves. Again involving the/an accountant if the matter is particularly complex.

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5

HMRC will accept income tax and CGT informally if below the ‘complex’ thresholds. And I have sent in the same letter without any issues.

I decide case by case on what I will do myself, or instruct an accountant, but tend to use the deceased’s accountants for pre-death if they had one.

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6

I do not prepare self-assessment returns for either pre or post death and outsource to an accountant. I do deal with the estate administration reporting if it can be dealt with on the informal basis as this tends to be easier and more cost effective, but I outsource when a full return / TRS reporting is needed.

7

I am an accountant and tax adviser. As well as preparing the tax return to the date of death, and the estate tax returns and accounts if requested, the schedule that I think we are more suited to preparing is page 8 of the IHT form 403, showing the income and expenditure for the gifts out of income.