We’ve written this short introduction to explain recent changes to HMRC online rules for executors and personal representatives.
In plain terms, the new process tells you how to register an estate for Income Tax and Capital Gains Tax while the administration period is open.
That matters because an estate can have its own tax position even after the deceased’s personal affairs are closed. Missing this can lead to surprises and penalties.
We will set clear expectations about when to register, what to do online via the Government Gateway, and common deadlines that catch families out.
We speak from experience: simple homeowner examples — selling a property in the administration period, or interest paid into an estate account — show why this is important.
Follow the steps and you should see fewer delays, fewer fines, and an easier route to distributing assets to beneficiaries.
Key Takeaways
- Register estates for Income Tax and Capital Gains Tax when required.
- Use the Government Gateway and HMRC online services for administration tasks.
- Focus beyond probate and Inheritance Tax to avoid missed filings.
- Typical scenarios like property sales can create taxable events for the estate.
- Proper handling reduces penalties and speeds up distributions.
What’s changed in HMRC guidance for estates, trustees and personal representatives
We now see a clearer split between the tax position that applies while an estate is being administered and the Inheritance Tax work that deals with the deceased’s affairs.
The update emphasises that income arising between the date of death and distribution can create reporting duties. This includes bank interest, rental income and dividends. Personal representatives and trustees must watch these receipts closely.
Capital gains can also arise during administration. When a trustee or personal representative sells property or investments, that disposal can trigger capital gains tax (CGT) even though beneficiaries have not yet been paid.
In practice, this means you cannot assume probate or IHT filings settle all tax matters. The administration period is active for income and gains, and responsibility sits with those running the estate.
- Key change: earlier reporting for income and CGT during administration.
- Who is responsible: trustees, trustee and personal representatives manage reporting and payments.
- We suggest checking thresholds early and considering a Trust and Estates Self Assessment to avoid missed returns.
For practical help on handling capital gains during administration, see our page on preparing for capital gains tax updates.
When you must register an estate with HMRC and start Trust and Estates Self Assessment
Start by seeing if the estate meets one of three straightforward thresholds for registration.
If any test applies, you must register and file a return.
Value at date of death
Over £2.5 million in total value at the date of death triggers registration. This valuation usually includes property, investments and bank balances.
Assets sold in the tax year
Personal representative disposals over £500,000 in a single tax year force a register-and-file action. Selling a family home plus investments can push you past this level.
Combined tax due in the administration period
If Income Tax and Capital Gains Tax due for the administration period exceeds £10,000, registration is required. This test looks at tax owed, not total asset value.
| Trigger | Threshold | What to check |
|---|---|---|
| Value at date of death | Over £2.5m | Include property, shares, accounts |
| Disposals by representative | Over £500k in tax year | Sum all sales completed in the tax year |
| Tax due for period | Over £10k | Calculate combined Income Tax and CGT |
| Deadline | 5 October after the tax year | Register by this date to get a UTR and file a tax return |
After registration HMRC issues a UTR. You must then file a Trust and Estates self assessment return for the administration period.
Quick decision path: if any threshold is met, register. If not, keep clear records and review year by year.
Don’t wait until the end. Delays in valuations or sale statements often cause late registration and penalties for unpaid tax liabilities.
How to use hmrc trust and estate guidance to register and manage an estate online
Start by securing a Government Gateway account so you can act calmly and on time.
Why start early: set up access before deadlines. This reduces mistakes and last-minute stress. Keep login details safe and share access only with authorised people.
Setting up and using online services
Create or use an existing Government Gateway username. Once registered, the online service lets you add details, update personal representatives, and appoint an agent.
Appointing an agent
Appoint an agent when matters are complex. We recommend professional help for multiple properties or significant tax liabilities. See our advice on registering an agent for practical steps: registering as an agent.
Ending the administration period
When all assets are distributed, tell HMRC the administration period has ended. Complete form SA900 or use the online return option. For the official online manage path, follow the government’s service page: manage your trusts registration service.
“Keep clear records: sale proceeds, income statements, dates and who acted.”
- Keep paperwork tidy for each tax year.
- Update contact details and representative changes promptly.
- File the final SA900 return to close the account.
Reporting and paying tax during the tax year: returns, UK property CGT and avoiding penalties
Selling property during administration calls for separate, prompt steps.
Selling UK residential property often triggers the 30-day reporting and payment rule for personal representatives. The 30 days start from completion date. Meet that deadline to avoid interest and penalties.
For capital gains calculations, record the sale date, probate value, buyer completion figure and allowable selling costs. These items shape the gain and the rate applied, especially with rate changes around April 2025.
Reporting a property gain (the quick CGT report) is different from filing the wider self assessment return for the tax year. Both can be required. Missing either creates separate penalties.
- Common causes of late filing: waiting for final accounts, missing broker statements, delayed completion statements.
- Interest and penalties: charges start to build from the payment due date; interest applies to late tax.
| Action | Deadline | Consequence of delay |
|---|---|---|
| Report UK residential disposal | 30 days from completion | Late penalty + interest |
| Pay CGT on that disposal | 30 days from completion | Interest and surcharge |
| File Trusts and Estates tax return | 5 October (paper) / 31 January (online) | Late filing penalty |
| Keep records | Retention ongoing | Easier compliance, fewer enquiries |
A quick avoidance checklist: completion statements, probate values, agent fees, bank interest slips and broker paperwork. Keep them together and act early.
For trustee duties and filing steps see our page on trustees’ tax responsibilities and read about property tax after inheritance at inheritance tax and inherited property.
Conclusion
Final practical note: As you wrap up administration, treat the estate as a separate taxpayer for any income or gains that arose after death.
Key message: estates can owe income tax or CGT during administration. Ignoring this is a quick route to penalties.
Remember the three registration triggers, and the 5 October deadline for filing by paper. Act early to avoid pressure.
Practical steps we recommend: set up online access, keep asset details up to date, appoint an agent if paperwork feels heavy.
If you don’t need to register but tax is due, HMRC allow an informal letter showing the IT/CGT due, the deceased’s name, address, NI number, UTR, plus the personal representative’s contact details. To close down reporting, tell HMRC the administration has ended or use form SA900.
If property, significant assets or ongoing income are present, treat the process like any other tax project — methodical, early, calm.