I understand that the current position is that for the 2016/17 tax year, personal representatives dealing with estates in administration do not need to report income and pay tax where:
•the only source of income is savings interest; and
•the tax liability is below £100.
I have a number of very small estates where the only gross interest due is on monies being held by our firm and it would be administratively simpler to pay all the interest to the beneficiaries rather than account to HMRC who sometimes have no record of the deceased.
Would it be acceptable to pay the gross interest to the beneficiaries and advise them that they may need to account to HMRC depending upon their own tax position?
Phoenix Legal Group