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SAM90031 | Permanent cessation: permanent cessation: period of administration (Action Guide)

From HM Revenue & Customs · Self Assessment Manual

When dealing with a period of administration, follow steps 1 - 13 below, as appropriate. The guide is presented as follows

For details of how to access any of the SA functions, select ‘Index Of Functions’ on the left of the screen.

Initial action

1. If you become aware that an income tax or capital gains tax liability is likely to arise during a period of administration, you should refer to the ‘Information’ section of this subject. If the liability cannot be dealt with informally, you should set up an SA record with the record type trust. Use function SET UP TRUST to set up the new SA record. Follow the procedures outlined in section ‘Set Up Taxpayer Record’, but note the following points

  • When using function SET UP TRUST, you should set the Trust Type field to ‘Non-discretionary’

  • When using function SET UP CAPACITY DETAILS you should

  • Select the capacity role of ‘Other’, and

  • Type in the appropriate capacity role

Note: If a personal representative wishes to appoint an agent to act on their behalf, a new form 64-8 must be completed to replace the existing form completed by the taxpayer

Action where early settlement requested

The following steps will only be appropriate when a period of administration is being wound up

2. Use function AMEND TAXPAYER SIGNALS to set

  • The Manual Return signal

  • The Last SA Return Required For Year Ending 5 April signal

3. Refer case to nominated Officer for authority to issue an in-year return. A Short Tax Return (SA200) should not be issued in such cases

  • Use function MAINTAIN RETURN PROFILE to enter the supplementary pages required with the return

  • Pass the blank SA return (and appropriate supplementary pages) suitably modified by amending

  • The dates to comply with the period for which the details of income and gains are required

  • The filing date

4. Upon receipt of authority from nominated Officer

  • Issue the modified SA return and supplementary pages together with normal enclosures, and

  • Enter the date of issue in SA Notes

5. When the completed return is received

  • Refer case to nominated Officer for further instruction

Action upon receipt of instructions from nominated Officer

6. Where the nominated Officer has instructed you to proceed with the case

  • Use function CREATE RETURN CHARGE to enter details of the return charge to be set up on the SA record

  • Use function VIEW STATEMENT to check the payment position on the SA record

7. If a repayment is due and an overpayment is shown on the SA record

  • Use function ISSUE REPAYMENT FROM OVERPAID BALANCE to repay the credit balance from the SA system. For more detailed information about repaying a credit balance see section ‘Issue Repayment’ in business area ‘Repayments’

8. Where the nominated Officer has instructed you to proceed with the case and there is additional liability

  • Issue a typed computation of liability accompanied by a payslip PS1(AZ) or PS1(BZ) to the agent or personal representative, and

  • Request that payment is sent direct to the Banking Operations office

Note: Determination of the estate’s liability may still result in the agent or personal representative wishing to settle the outstanding liability at the normal due dates. Do not pursue payment. SA rules will apply

9. Where the nominated Officer has instructed you not to proceed with the case

  • Follow their instructions

Nominated Officer action where early settlement requested

10. If a case is submitted for authority to issue an in-year return, only provide authority where

  • You are satisfied that a request for early settlement has been made

  • The necessary manuscript amendments are made to the return

11. Upon receipt of a completed in-year return you should undertake a preliminary examination of the return to consider whether an enquiry is necessary

12. If an enquiry is not called for write to the agent or personal representative

  • Acknowledge receipt of the return, and

  • Include the sentence ‘I confirm that on the basis of the information contained in the return, I do not propose to make an enquiry’

Note: This will preclude the possibility of any future Section 9A enquiries in respect of the period covered by the return

  • Give instructions to calculate the estate’s liability

The same procedures may be followed where the return has been issued at the end of the year in the normal way but the agent or personal representative is seeking early finality

13. If an enquiry is necessary

  • Inform the caseworker that he / she should not proceed with this case

  • Make arrangements for enquiries in accordance with office procedures. See section ‘Risk and Enquiry’ (SAM32000 onwards)