A friend of mine has asked me to assist with completing in the relevant forms following their mother passing away last week.
My friends mother did not complete tax returns when she was alive but having looked through the paperwork it looks like she had a lot of investments and possibly should have.
The main form that needs to be filled in appears to be the R27 form, to ensure that the correct tax has been paid in the current tax year. The form seems to read that as long as your income is not over a certain amount then a tax return is not required, is this correct.
Going back to basics you only need to complete a tax return if you have income that requires to be taxed but hasnt been.
If you have investments that results in income eg dividends then you will only have tax to pay if the dividends income (including the 10% tax credit) pushes total taxable income into the higher rate band. As the tax credit satisfied tax liability at the basic rate level.
Thanks for the reply Mark,
Based on the information I have seen, the total income is below the tax threshold. So it looks like that no tax return should be requested by HMRC.
Ruth
