Administration of Estate

Question 1

What tax rates apply to capital gains made on estate assets during the
administration of the estate?

Answer 1

20% on general gains and 28% on residential property.

Question 2

What are non-savings income (that is, trading income, rental profits,
employment income, and pension income) and interest earned by Personal
Representatives taxed at?

Answer 2

During the administration period these are taxed at the basic rate of 20%
regardless of the amount of income.

Question 3

Who is legally required to pay the death tax on a gift with reservation of benefit.

Answer 3

The recipient of the gift

Question 4

Who is legally required to pay the death tax on settled property?

Answer 4

The trustees on behalf of the trust

Question 5

When disposing with the estate, in what circumstances are PRs eligible for annual exemptions?

Answer 5

If the death estate has produced income, Personal Representatives
will not be entitled to a personal allowance, personal savings allowance, or dividend
allowance. However, if any assets are sold during the administration period,
Personal Representatives will be entitled to an annual exemption.

Question 6

Are Personal Representatives entitled to claim any annual exempt amount
against the estate’s capital gains?

Answer 6

Yes, for the year of death and the following two years only