I have two estates that have recently sold properties and both realised a significant gain, which was reported within 30 days and the tax paid. I am now in the position of finalising the estates and both have a modest income, which not for the CGT could be reported using the informal procedure. HMRC have advised me that they need to be registered on a formal basis and estate returns are required. This seems ridiculous when the amount of income tax we are referring to amounts to c£300 and the CGT has already been reported and paid. Has anyone come across this and argued the point or any other tips please?
By the time you’ve worked out the income tax, you might as well put it on a form and send it in to declare it.
Victoria - I asked HMRC about an estate with no income, just the gain which had been reported under the 30 day rule and CGT paid. I too was told that registration and a Return was still needed. The person at HMRC to whom I spoke did think that their procedures would probably be revised in due course to remove this requirement. We will see!
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