Lasting Power of Attorney 2026/27

A Lasting Power of Attorney (LPA) is a legal document that lets someone you trust — your attorney — manage your finances and make decisions if you lose mental capacity or can no longer cope. This guide covers LPAs made in England and Wales; Scotland and Northern Ireland use different documents and rules. For tax purposes the critical document is the Property and Financial Affairs LPA, which can authorise the attorney to pay bills, manage bank accounts, sell property and deal with HMRC. For the 2026/27 tax year the Office of the Public Guardian (OPG) registration fee is £92 per LPA. See how the attorney's duties fit the filing calendar with the Self Assessment Filing Guide and the Self Assessment Calculator→.

The most common misunderstanding is that an LPA automatically gives someone access to the donor's tax affairs. It does not — a registered property and financial affairs attorney must use HMRC's specific power-of-attorney process before dealing with the donor's tax records. A paid tax agent uses a separate agent-authorisation route.

The Two Types of LPA

A registered Property and Financial Affairs LPA can be used while the donor still has capacity, subject to the document's instructions and the donor's wishes. The donor should be supported to make their own decisions whenever they can. It can authorise the attorney to pay tax bills, receive refunds, sell investments that generate taxable income and complete Self Assessment returns. A Health and Welfare LPA covers medical and care decisions only and does not authorise financial or tax action — you need the property and financial LPA for those matters.

Registering an LPA

An LPA only takes effect once registered with the Office of the Public Guardian. The process includes completing the LPA form, having the donor sign it in front of a witness, having a certificate provider confirm the donor understands the document, and submitting it with the £92 fee per LPA. GOV.UK says registration takes 8 to 10 weeks if there are no mistakes, but it can take longer. A couple registering both property and health LPAs for each other would therefore pay £368 for four LPAs before any remission or exemption. There is no general deadline to register, but an unregistered LPA cannot be used when needed.

HMRC Agent Authority — The Missing Step

The LPA gives legal authority, but HMRC's digital systems do not recognise it automatically. A registered property and financial affairs attorney should follow HMRC's power-of-attorney process: for an eligible registered LPA, the attorney can use the LPA online account access code, or send HMRC the original or a certified copy of the LPA. HMRC then records the authority for the donor's tax affairs. A paid tax agent uses the separate agent-authorisation route, which may include form 64-8; 64-8 is not a universal substitute for the LPA process. Arrange access before a return or payment is due.

The Attorney's Tax Duties

Once authorised, the attorney's responsibilities include:

• Filing Self Assessment returns by 31 January each year, and registering the donor if they have not filed before.
• Paying tax and payments on account from the donor's funds, on time, to avoid penalties and interest.
• Claiming refunds and reliefs the donor is entitled to, including Gift Aid and pension relief.
• Reporting capital gains on sales of property or investments and paying the CGT due.
• Keeping records for the donor's affairs while the LPA is in force. An LPA ends when the donor dies; the executor or administrator then handles the final return and any Inheritance Tax as part of estate administration.

The attorney must act in the donor's best interests and keep accounts of everything they do — HMRC and the OPG can both ask for them. Attorneys cannot use the role for their own benefit, cannot make gifts beyond the Mental Capacity Act limits, and cannot change the donor's will.

Tax Planning Within an Attorney's Powers

An attorney may take ordinary financial steps within the LPA, its instructions and the donor's best interests, but no tax saving is automatically authorised merely because it is tax-efficient. The attorney must not make gifts from the donor's estate except within the narrow statutory exceptions: for example, a customary occasion or a gift to a person or charity the donor supported or might have supported, and only where the value is reasonable in the donor's circumstances. Larger gifts or IHT planning generally require an application to the Court of Protection. Keep evidence of the donor's wishes, capacity and best-interests reasoning, and obtain advice where the authority is uncertain.

Safeguards Against Misuse

The LPA system has built-in protections. The certificate provider must confirm the donor understands the document and is not being pressured, and people can object to registration with the OPG. Once active, the attorney must keep the donor's money separate from their own, act within the document's powers and the Mental Capacity Act, and keep records. The OPG can investigate complaints, request accounts and remove an attorney who breaches the rules; theft or fraud may also be a criminal matter. The donor remains responsible for the accuracy of tax information, while the attorney must provide complete and accurate information within their authority.

Common LPA Mistakes

• Registering only a Health and Welfare LPA — it gives no tax authority at all.
• Assuming the LPA works with HMRC — the separate HMRC power-of-attorney process is required.
• Leaving registration until it is needed — the 8 to 10 week process can take longer if there are mistakes or complications.
• Missing filing deadlines as attorney — penalties and interest fall on the donor's estate.
• Making unauthorised gifts — exceeding the Mental Capacity Act limits can invalidate the attorney's actions.

Multiple Attorneys and Joint Decisions

You can appoint more than one attorney, and how they act depends on the wording. Joint attorneys must all agree on every decision, while joint and several attorneys can act independently. You can name replacement attorneys and specify how attorneys must work together, but the arrangement should reflect the donor's circumstances and the wording of the LPA. For tax, agree practical responsibilities in advance and keep a shared record so that two attorneys do not both submit or pay the same item.

Action Plan for 2026/27

A review file for family and professional advisers

The file should identify the donor's assets, regular income, liabilities, insurance, care costs and recurring tax deadlines. Record the donor's preferences and any restrictions in the instrument, and note why a material decision was made. Where family members disagree, keep communications factual and do not move money simply to end an argument.

An attorney should check statements for unusual payments, duplicate bills and transfers to connected people. A reimbursement should have a receipt and a clear explanation. Gifts and loans need particular care: authority to manage finances is not automatically authority to make gifts beyond the permitted pattern. Ask the Office of the Public Guardian or a qualified adviser where the authority is uncertain.

Tax records should show whose income or gain it is, who filed the return and which account paid the liability. Keep the donor's documents separate from the attorney's personal tax file. This makes an audit, a change of attorney or a later assessment far less disruptive.

The attorney should be able to explain every material decision from the donor's records without relying on memory or family assurances.

Financial controls for an attorney

An attorney should maintain a clear separation between the donor's money and the attorney's own money. Use an account in the donor's name where appropriate, keep receipts, record decisions and reconcile statements regularly. Do not treat access to the account as permission to make gifts, change a will, borrow money or improve the attorney's own position. The authority comes from the lasting power of attorney and the relevant legal duties, not from convenience.

For tax and benefits, keep the donor's income, pension, savings, property and care-cost records together. A change in who operates an account does not automatically change beneficial ownership or the taxpayer. Tell HMRC, banks and providers only what is necessary and keep copies of notifications. If a tax return, property disposal or large transfer is involved, obtain advice before the transaction rather than trying to repair the records later.

Review the arrangement after a move into care, a change in capacity, a new investment, a family dispute or a significant change in income. If the attorney is unsure whether a decision is within authority, pause the transaction and seek guidance from the Office of the Public Guardian or a qualified adviser. Good records protect the donor and make a later review much easier.

Frequently Asked Questions

Manage the donor's affairs with the Self Assessment Calculator→ and the Self Assessment Filing Guide, then read the Probate UK guide for what happens after death and the Inheritance Tax guide for the estate's obligations.

Official sources

• GOV.UK: Power of attorney
• GOV.UK: Register a lasting power of attorney
• GOV.UK: Make a lasting power of attorney
• GOV.UK: Manage a lasting power of attorney
• GOV.UK: Power of attorney over tax affairs
• HMRC: Authorising an agent to deal with your tax affairs
• GOV.UK: Giving gifts