What happens to someones Income Tax affairs when they die?
When someone dies, they are entitled to their normal full year’s worth of allowances. A tax return will need to be completed for the last period of their life from 6 April up to the date of their death and the tax will have to be worked out accordingly. Income arising after death is treated as the income of the estate and becomes the responsibility of the trustees or executors. When the estate is distributed, both the capital and the income that has arisen since the date of death will be distributed according to the Will to the various beneficiaries and tax will be deducted from any income that has been received at the appropriate rate. If you as a beneficiary receive income that’s been credited to a deceased person’s estate, then you will receive that income net of the appropriate rate tax and while you may have to pay higher rate tax on the income, there’s also a chance that you might be able to claim some back or for there to be no adjustment at all.
When someone dies, they are entitled to their normal full year’s worth of allowances. A tax return will need to be completed for the last period of their life from 6 April up to the date of their death and the tax will have to be worked out accordingly. Income arising after death is treated as the income of the estate and becomes the responsibility of the trustees or executors. When the estate is distributed, both the capital and the income that has arisen since the date of death will be distributed according to the will to the various beneficiaries and tax will be deducted from any income that has been received at the appropriate rate. If you as a beneficiary receive income that’s been credited to a deceased person’s estate, then you will receive that income net of the appropriate rate tax and while you may have to pay higher rate tax on the income, there’s also a chance that you might be able to claim some back or for there to be no adjustment at all. Find out more about making a wil
