Should UK shares be sold before or after death if no tax has been paid on dividends?

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Cath Ann

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Father (deceased 2018) dabbled in a few UK shares (nothing massive) but we're pretty sure he didn't (know to) declare dividends for tax. Mother now owns the shares in her name. Should she sell them now and declare the dividends (aswell as any share sale profits) to Revenue? Or do we wait til the estate is in probate and then declare them? If waiting will we have to take out probate in the UK aswell as Ire? Don't really know the full dividend history , we have a few stubs - would have to go back through bank statements? Bit of a mess? Thank you
 
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The Executor of your father's estate should have sorted out his tax affairs.

Your mother's are separate. Selling them doesn't change anything.

If she has received dividends since 2018, she should declare them.

How much in dividends did your mother receive since she inherited the shares?

If they are not "massive", Revenue might not worry too much about it.
 
Thanks for your help Brendan,
Dad's estate didn't go to probate because everything was in joint names with Mum, he left everything to her and she was executor. She just instructed bank accounts and shares be transferred into her sole name. At a guess I'd say her share dividends received since 2018 total c.€5,500. I'll advise to her that she declare them to Revenue. And probably easier to sell them now?? as she's not interested in the hassle (the online stuff is tricky for her) and she is quite elderly.
 
OK, she should probably just make a tax return now and point out that she is declaring all her dividends in one year. I would guess that Revenue won't get too excited about it.

But sell the shares if she is worried about stuff like this.

The advantage, though, of holding onto shares until she dies, is that capital gains disappear on death.

She probably has a CGT bill if she sells them now.

But freedom from worry is more important than maximising the tax efficiency.

Brendan
 
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