Bracing yourself for income-ing tax

You must pay income tax on any income received during the probate process, such as rents from property and interest from National Savings accounts. Unfortunately, when the deceased dies, so does their income tax personal allowance.

Income earned on the estate is never taxed at the higher band of 40 per cent – so be grateful for small mercies.

Ask your local tax office for an income tax return and fill it in with all the income that the deceased's estate has earned.

Bracing yourself for income-ing tax

If the estate borrowed in order to pay an inheritance tax bill, the interest payments on this loan for the first 12 months can be offset against any income tax due.

If the estate is largely made up of savings accounts, then tax is deducted at source. That makes things easier!

Add comment

Security code

Copyright © 2019 | "The Theory of the Business"