I am dealing with an estate which has been registered with HMRC due to more than £500k of assets being sold in the tax year. However, there is no CGT to be paid and the income is only around £1k in dividends. My query then is can I still report the income informally to HMRC or must I complete a tax return? I have a UTR.
There is only one thing that requires taxpayers to file a file a tax return and that is being issued by HMRC with a notice under s 8 or s 8A of the TMA 1970. If the executors have received any such notices then a return is required for each relevant year. However, you can ask HMRC to cancel the notices - they can only say ‘no’. Getting to speak to an officer before the filing deadline might be difficult if you are not an agent.
If you haven’t received the notice to submit a tax return and you are nearing the end of the administration, I would if I were you submit an informal report by letter reporting the dividend income for the period of the administration to HMRC and see what happens.
Thank you Patrick, I was thinking the same.
I have the same position on an estate and called HMRC to confirm the position.
I was informed a tax return has to be submitted as they need the details of the property disposal - even if there is no CGT to pay.