I have searched high and low and have failed to find definitive guidance on this.
I have a client with brought forward rental losses who died just after receiving the first rental amount for a new tenancy on a solely owned property. I understand that the losses do not pass to the estate. I also understand that both the original taxpayer and the estate can produce rental accounts under the cash basis.
The question is does there need to be a cessation of the cash basis on death and a consequent restart within the estate, if so desired? Obviously it would be helpful to be able to use slightly more of the soon to be lost losses against the rent received but helpfulness is not something I generally associate with HMRC.
Many thanks
Replies (6)
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He ceased when he died.
I'm not sure you'll find any "guidance" on this self-evident point.
Unless you have been appointed by the executor, you don't have a client; you have an ex-client.
I am aware of this and have been appointed by the executor, but thanks for your less than helpful attempt at point scoring.
You said you have a "client with brought forward rental losses" which you don't so it was attempting to establish the facts which are often useful in determining the appropriate course of action.