Tax on pension paid in arrears

wyliam

Hello;
My mum died in March 2010. I then found that she had been underpaid her Civil Service Pension for 11 years. This has now been sorted-out and they have paid £4902 into her estate. That amount is £5694 gross, less £792 income tax. They deducted income tax as if the whole amount was income in 2009/10.
The question is -
Should income which is paid late, in this case very late, be taxed as income in the year it is received, or as income in the year(s) that it applies to?
If I calculate the tax liabilities for each year, the estate is due a refund of just over £500, not an inconsiderable sum.
The HMRC site is silent on this issue.
Help appreciated,
Wyliam

jimmo

http://www.hmrc.gov.uk/manuals/eimanual/EIM74103.htm

wyliam

Thanks muchly jimmo
I just knew someone would know where the answer is.
How did you find it when hours of searching and reading hmrc.gov.uk failed to come up with that?
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Wyliam

jimmo

wyliam wrote: »

How did you find it when hours of searching and reading hmrc.gov.uk failed to come up with that?
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Wyliam

37 years experience as a taxman.
With or without the internet there is no substitute for knowing where to look it up.
Mind you, on any website other than HMRC I am like a fish out of water so rely heavily on MSE when I need to.