Tax returns to date of death

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

Personal representatives are responsible for finalising the deceased’s tax affairs. They must file outstanding tax returns and claim any repayments due.

For many estates where the deceased’s tax was deducted under PAYE on pensions or employment, a refund is likely to arise because the deceased is entitled to the personal allowances for the whole year, and not just for the portion of the tax year up to the date of death. The tax position of those within self assessment will depend on their sources of income, whether they are up to date with tax returns and accounts, and the date in the tax year on which death occurs.

You should review the tax position at an early stage in the administration, and bear in mind that PRs are personally liable for both unpaid tax and losses to the estate, which arise because they have omitted to claim tax refunds. Although it is not necessary to finalise income tax affairs before applying for probate, you will need to calculate the position

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