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As a personal representative (an executor or administrator) you鈥檙e legally responsible for the money, property and possessions of the person who died (the 鈥榚state鈥檚 assets鈥�).

You鈥檙e responsible for the assets from the date of death until the date everything has been passed on to the beneficiaries. This is known as the 鈥榓dministration period鈥�.

During the administration period you may have to:

• pay any debts left by the person who died
• sell assets such as properties or shares
• pay Income Tax on things like rental income from property, profits from a business or interest from investments
• pay Capital Gains Tax on profits from selling shares, investments or property
• report the estate value, income and tax liability to HM Revenue and Customs

You can get professional legal advice and help, such as from a solicitor, to deal with any estate. You should consider this if the estate has a lot of assets or includes things like trusts.

You may be able to get free tax advice if you鈥檙e on a low income.

If you鈥檙e dealing with the estate with someone else

If you鈥檙e not the only personal representative you should agree with the others:

• where to hold financial assets - you can set up a bank account known as an 鈥榚xecutorship account鈥� if needed
• rules on making withdrawals or payments from any accounts connected to the estate
• what assets you need to sell and when

You must pay any debts and settle the taxes for the person who died. This includes:

• paying any unpaid bills
• paying any unpaid personal taxes
• applying for tax refunds
• filling in a Self Assessment return for income the person earned before they died if needed
• repaying any overpaid benefits

To find out what taxes are owed or if any tax refunds are due, you can either:

• use the Tell Us Once service
• contact HM Revenue and Customs (HMRC) directly to ask

Tell any employer or private or workplace pension provider about the person鈥檚 death. Ask them to tell HMRC if there鈥檚 a last salary or pension payment. HMRC needs this to calculate the final amount of Income Tax due.

giving any creditors 2 months to claim anything they鈥檙e owed. Do not distribute the estate鈥檚 assets until the 2 months is up. If you do and the estate then cannot afford to pay a debt, you may have to pay it yourself.

Other taxes you might need to pay

You must also check if you need to:

• pay tax on any new income the estate generates after the person has died聽

• pay Inheritance Tax

You may have to pay taxes for the estate if there is any new income while you鈥檙e dealing with it, for example profits from selling things like shares or property, or dividends from investments.

Selling shares or property

If you sell shares, investments or property that belong to the estate you may have to pay Capital Gains Tax on them if either:

• they鈥檝e gone up in value since the person died
• they鈥檝e gone up in value since being valued for Inheritance Tax

Read guidance on:

• tax when you sell property
• tax when you sell shares
• Capital Gains Tax rates and allowances for estates
• how Capital Gains Tax applies when someone dies

If you owe Capital Gains Tax on residential property you usually have to report this within 60 days.

If you sell land or property you must also update the property register with HM Land Registry.

Savings, dividends or other income

Some assets can continue to generate income after the death until you transfer or sell them. This could include:

• rental income from property
• profits and payments from the person who died鈥檚 trade or business
• interest or dividend payments on savings, shares and other investments

You must work out and pay Income Tax on the full amount of income the estate receives between the day after the death and the date everything has been distributed.

Estates do not get any allowances on savings, income or dividends. Estates pay tax at the basic rates of 8.75% on dividends and 20% on any other income.

You may need to send information to HM Revenue and Customs (HMRC) about the estate鈥檚 income from the day after the death until the date everything has been passed on to beneficiaries (the 鈥榓dministration period鈥�).

What you need to send depends on:

• the value of the estate
• how much income it generated during this time
• if there was any tax to pay

When you do not need to report the estate

Up to 5 April 2024, if the only income the estate received during the administration period was from bank account interest which was less than 拢500, you do not need to report the estate to HMRC.

From 6 April 2024, if the estate鈥檚 income from any sources is less than 拢500, you do not need to report the estate to HMRC.

The 拢500 tax-free amount applies:聽

• for every tax year of the administration period, but you cannot carry over unused amounts from one year to the next
• to all types of income, except ISAs, which continue to be exempt from Income Tax or Capital Gains until the estate is closed or up to 3 years after the person鈥檚 death

Reporting on 鈥榮imple鈥� estates

Report tax owed in the administration period simply by writing to HMRC (known as 鈥榠nformal arrangements鈥�) if all of the following apply:

• the estate was valued at less than 拢2.5 million when the person died
• the total Income Tax and Capital Gains Tax due is less than 拢10,000
• you did not sell more than 拢500,000 worth of assets in any single tax year during the administration period

To report the estate send a letter to HMRC at the end of the administration period, including:

• your name, address and phone number
• the name, address, National Insurance number, and Unique Taxpayer Reference (UTR) of the person who died
• any Income Tax and Capital Gains Tax still due for the whole administration period
• any Income Tax and Capital Gains Tax you have reported and paid during the administration period, for example if you sold property

HMRC will then send you details on how to pay any tax the estate owes.

Reporting on 鈥榗omplex鈥� estates

If you cannot use informal arrangements you must register the estate online and send a Self Assessment tax return for the estate.

You must register by 5 October after the tax year you鈥檙e sending a return for.

For example, to send a return for the 2023 to 2024 tax year (ending 5 April 2024) you must register by 5 October 2024.

To register an estate you鈥檒l need:

• to make a Government Gateway account as an 鈥極rganisation鈥� - you can create this before you sign in for the first time
• an email address
• your details, including your National Insurance number or passport number
• the details of the person who died, including their National Insurance number

You need a separate Government Gateway user ID for each estate you register.

If you鈥檙e an agent, you鈥檒l need to use your agent services account. You鈥檒l need permission from the personal representative to access the estate details.

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Once you register, you can manage information about the estate.

Sign in to your account to:

• update your details
• update the estate鈥檚 details
• appoint an agent
• close the estate once it has been distributed

After you鈥檝e registered an estate

HMRC will send you a UTR for the estate within 15 working days. Use this to either:

• fill in a Trust and Estate Tax Return (form SA900) and post it to HMRC by the 31 October of the following tax year
• send a return online using tax software that supports SA900 reporting by 31 January of the following tax year

You must pay any tax due by the next 31 January following the tax year in your return (the same deadline as for sending a return online).

Once you have paid any debts and taxes, or you are sure the estate has enough money to do so, distribute the estate according to:

• the will
• the law if there鈥檚 no will

If you paid tax on any income during the administration period, give anyone receiving that income a completed statement of income from estates form.

There is guidance for beneficiaries about tax on property, money and shares they inherit.

If you distribute property

If you are passing on a property you must update the property register with HM Land Registry.

Prepare final accounts

Once all the estate is distributed you can prepare the final estate accounts. These should be approved and signed by you and the main beneficiaries.