What happens if the taxpayer dies part way through the tax year, before they have made the election?
A. The taxpayer will be liable for income tax on the benefit they derive from the pre-owned asset from the 6 April in the first year of assessment up to their date of death. It is not possible for personal representatives to make an election after the date of death and the estate will be liable to pay the income tax due up to that date (provided it is not below the de minimis limit). But the charge to income tax on the pre-owned asset ceases on the death of the taxpayer.
