Finding a Tax Accountant for Probate Tax Issues

As an executor, you will handle some tax aspects during probate, particularly calculating Inheritance Tax (IHT). However, estates can throw up complex tax questions that go beyond the basics. When specialist tax knowledge is required, bringing in a qualified tax accountant is a shrewd move. This guide focuses on how to find the right expert for estate related tax matters.

When is Specialist Tax Advice Needed?

While standard IHT calculations might be manageable, consider engaging a tax accountant or advisor if the estate involves:

• Complex Inheritance Tax: Situations involving business property relief (BPR), agricultural property relief (APR), significant lifetime gifts, or foreign assets which impact the IHT calculation.
• Capital Gains Tax (CGT): If assets (like property or shares) are sold during the administration period for more than their date of death value, CGT might be payable by the estate. An accountant can calculate this and advise on any reliefs.
• Income Tax: The estate may receive income (e.g., rent, dividends) during the administration period, which needs reporting via an estate tax return. You also need to finalise the deceased's personal income tax position up to the date of death.
• Trusts: If the Will creates ongoing trusts, specialist tax advice is usually essential.
• Interaction with Foreign Taxes: Where overseas assets are involved, understanding how UK and foreign taxes interact requires expertise.

If you are grappling with any of these, professional tax advice can prevent costly errors and ensure compliance with HMRC.

Where to Find Accountants Experienced in Estate Taxation

You need someone with specific experience in trusts and estates, not just general accounting. Here’s where to look:

1. ICAEW 'Find a Chartered Accountant' Service:

   • What: The Institute of Chartered Accountants in England and Wales (ICAEW) has an official online directory. 'Chartered Accountant' is a legally protected title signifying rigorous training and ethical standards.
   • How: Visit the ICAEW Find a Chartered Accountant service. Search using keywords like 'probate', 'estate administration', 'Inheritance Tax', or 'trusts and estates' along with your location.
   • Why: It connects you with regulated professionals, providing assurance of qualification.

2. CIOT (Chartered Institute of Taxation) 'Find a CTA':

   • What: The CIOT is the leading professional body for taxation in the UK. Chartered Tax Advisers (CTAs) are specialists.
   • How: Use their Find a CTA directory. Look for individuals or firms listing 'trusts', 'estates', 'Inheritance Tax', or 'private client' work as specialisms.
   • Why: CTAs have advanced qualifications specifically in tax, often with deep knowledge of niche areas like estate taxation.

3. Recommendations (Check Specialisation):

   • Referrals from friends, family, or your solicitor (if you are using one) can be helpful.
   • Crucially: Always confirm their specific expertise. Ask directly: "Do you specialise in estate taxation, including IHT and CGT during probate?" A general business accountant might not have the necessary depth for complex estate issues.

4. Clear Executor's Recommended Partners:

   • We collaborate with tax advisors and accountants experienced in the specific tax challenges faced during estate administration.
   • If you need a referral to a specialist we trust, let us know.

Key Questions for Potential Tax Accountants

When shortlisting candidates, ask targeted questions:

• Estate Tax Experience: "What's your experience dealing with Inheritance Tax complexities like BPR/APR? How often do you handle Capital Gains Tax calculations for estates or complete estate income tax returns?"
• HMRC Interaction: "How do you manage correspondence and negotiations with HMRC regarding estate taxes?"
• Who Does the Work?: Will a qualified specialist handle your case, or will it be delegated?
• Fees: Get a clear understanding of their charging structure (hourly rate vs. fixed fee for specific tasks). Request a written quote outlining the scope of work.
• Integration: If you are also using a solicitor, how will they liaise with them?

Making Your Choice

Select an accountant who clearly demonstrates deep knowledge of UK estate taxation relevant to your situation. Look for qualifications like ACA/FCA (from ICAEW) or CTA (from CIOT). Good communication and transparent fees are also vital.

Wrapping Up

Navigating complex estate taxes requires specialist knowledge. Engaging a qualified tax accountant experienced in this field ensures accuracy, compliance, and potentially saves the estate significant amounts by utilising appropriate reliefs correctly. Taking the time to find the right expert provides invaluable peace of mind when dealing with HMRC.