How to complete the “Potential repayment to the estate” form (R27)

 To find out more about the form, and whether it is required, see our guide “What is the “Potential repayment to the estate” form (R27)?”.

Calculating income

Types of income are shown on page 2 of the form. Inquiries may have to be made to banks, the employer at date of death (if any), the Pension Service and others. Often, this can be done over the phone.

The Probate Wizard will not compile form R27 as it is not required to obtain a grant of representation. However, the Wizard will ask pertinent questions in the letters to banks and pension companies, which will help you complete form R27. You can look back over the letters received from banks and others to determine:

1. interest received with tax taken off;
2. interest received without tax taken off;
3. tax deducted;
4. pension income and tax deducted; and
5. pension lump sums and tax deducted.

These figures are difficult to guess. For accurate figures, details should be obtained from the relevant institutions.

Help completing the form

For assistance completing form R27, call the HMRC Taxes Helpline on Taxes Helpline on 0845 3000 62.

Submitting form R27

If form BD8 was submitted shortly after death, the Department of Work and Pensions should have forwarded this to HM Revenue & Customs, who should in turn send you form R27 (for these reasons you may receive the form a few weeks or even months after starting the probate process).

The form will include the address of the appropriate tax office stamped on the front page. When completed, you should return the form to this office. Form R27 is not submitted to a probate registry.

Payment to the estate or demand for tax

At some point following the submission of the form, you should receive a cheque representing the amount due to the estate, if any, or a demand for payment of tax. This can take from a few weeks to a few months.

Because a demand for payment of tax is possible, it is usually sensible to keep back some estate funds until the income tax position has been finalised. Otherwise, the estate may not be able to cover any repayment, and the personal representatives could be personally liable. Usually, a few hundred pounds should suffice, but it may be more for larger estates. 

If in any doubt, seek professional advice.

Solicitor or other probate professional

If a solicitor or other probate professional is dealing with the estate, they should complete form R27 (or arrange for it to be completed by an accountant) as a matter of course. For the reasons stated above, form R27 can delay the final distribution of the estate.