How should accrued interest on savings gets taxed

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Alan_P wrote: »

In this case, I think it does make a difference to the tax due.

As she died just 7 weeks into the tax year, then if counted as part of her personal income she still would be well within her personal allowances.
But if counted as part of the estate under administration then there is no personal allowance so full 20% tax due.
My understanding is the beneficiaries can only reclaim the tax paid for the estate under administration, if their personal income plus the interest earned after death is less then their allowances - but maybe I misunderstand that as well.

can't they count the interest towards their personal saving allowance as they receive the interest as they have a beneficial interest in the capital that created it.

They may not be able to claim it back but don't they declare the interest payment, then if they are under their interest free threshold they won't pay tax on that but they still have the tax credit towards their normal tax bill.