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TonyTax
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With a legal firm I closed an estate of £135k last year.Suddenly
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With a legal firm I closed an estate of £135k last year.
Suddenly a friend has said - I should have been issued with a form R185 when I closed the estate last August. I don't like to bother the law firm - is this necessary as in the accounts we had paid money to HMRC for a small amount of tax about £10.
Do I need this R185 form?
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Customer:
replied 2 years ago.
When the estate was being wound up some shares paid dividends therefore the estate earned small amounts of money
Expert:
TonyTax
replied 2 years ago.
Hi. An R185 form is only required if part of the monies distributed from a deceased estate was income as opposed to capital. Sometimes, interest may be earned on cash in a bank or dividends may be paid on shares between the date of death and the completion of the administration of the deceased estate. Tax on estate has to be accounted for at 20%. If you were a higher rate taxpayer when the funds were paid out then you will be due to pay some more tax on your share of any income paid out by the estate. Dividends are treated as basic rate tax paid so, again, you would only have extra tax to pay if you were a higher rate taxpayer when the funds were paid out. If you weren't a higher rate taxpayer then, I'd forget it if I were you. I hope this helps but let me know if you have any further questions.
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Expert:
TonyTax
replied 2 years ago.
Hi, I'm just checking in to find out if you need further advice or clarification.
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Customer:
replied 2 years ago.
That is brilliant and thank you for your reassurance.
Expert:
TonyTax
replied 2 years ago.
Thanks.
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