A dies with a very small free estate valued at £50,000.
He has a QIIP in a £5 million trust.
Is this a simple or complex estate (based on values)?
We are used to thinking of the value of an Estate for IHT which would clearly include the £5m but this is looking at the estate for Income Tax/CGT so I would go with simple and deal with it on the informal basis.
On assets of £50k it is likely that the income will be below the minimum required to give rise to a liability.
That’s not what HMRC told me…although your answer is what I want the position to be!