Reporting capital gains on residential property for deceased estates

Does anyone know if the system for reporting capital gains on property for deceased estates is ever going to be improved?

As I understand it, PRs can only use the online process currently if they have (or create) a personal UK Property Account and use that account for the estate (as well as for their own affairs, if any). Also, if PRs want to appoint an agent for this purpose, it has to be the same agent as would deal with their personal affairs. I can’t imagine there are many cases where that is appropriate or acceptable to the PR.

The alternative we are left with is the paper PPD CGT form, which seems to take an age to obtain, followed by further ages to process by HMRC. A colleague of mine submitted a form to HMRC in early September and has just been given a timeframe of June/July for a response! It would be good to know whether anyone apart from us who have to deal with this farce (and our clients) cares. Should I be writing to my MP? Is STEP pressing for change?

Diana Smart
Gordons LLP

Hi Diana,

I can help with this.

Yes the PR has to use their own online CGT account, which is set up via their Government Gateway ID. The CGT when prepared is marked as ‘completing on behalf of someone else’. This then differentiates in the reporting process.

I have done this as an agent and set up the digital handshake and once the report was filed, the PR went in and cancelled our access. It does not have to be their existing agent - it does not affect their 64-8.

One big problem, is if you send in a paper form as an agent and send a 64-8 their is a risk of it being used to overwrite the existing agent. I have complained about this on the HMRC agent forum but they have been unable to provide a solution. Thus far I have been writing in BIG LETTERS on the paper 64-8 - CGT ONLY in the hopes that it solves the issue.

Good luck but let me know if I can help further.

Lucy Orrow CTA TEP
Lambert Chapman LLP

Sorry to revive an old thread but I wondered if anybody had seen confirmation that estates can now open their own UK Property Account?

We attempted it in ignorance of the above, and it asked if we were an estate (which seemed positive) but then would not recognise the estate UTR and name

HMRC guidance now says:

" You can report the disposal online if you’re using either:

  • your own online Capital Gains Tax on UK property account on behalf of someone else
  • the online Capital Gains Tax on UK property account for the complex estate in administration — you’ll need the organisation’s Government Gateway account and Unique Taxpayer Reference that was used to register the trust with HMRC.*"

For 60 day CGT. no it still has to be a PR or Executor’s account as far as I’m aware.
Lucy Orrow

The paper CGT returns are currently available to download from the HMRC website. However, HMRC have said this is a trial measure, and if a lot of people download and send paper forms when they should be filing online, they will revert to the having to order system.

We have recently received payment references for paper returns submitted last summer - so I’m afraid those timescales do not surprise me.