Bank Account Value

HappyScotsman

What value to use for IHT purposes?

Suppose Bob died last December. After much digging, the Exor finds evidence of an unknown bank account, fills in the paperwork, and Bank of Blahshire proclaims the balance to be £12,345. Of course, that form asked for a sort code and account number to move funds to, it's under the £50k limit so a week later the Exor account is credited with £12.345.33 as it had earned a little interest. 

Now what figure should be declared to HMRC? Is it £12,345.33 since that is what was gathered, or does one go back to Bank of Blahshire and ask for the balance as of the date of death? Assume the Exor account has a 0% interest rate.

Marcon

For 33p nobody's going to care either way.

Keep_pedalling

Marcon said:

For 33p nobody's going to care either way.

That is true, but technically you declare the amount at the time of death, any interest earned after the death is taxable income against the estate. HMRC do not however require an executor to submit an estate tax return where income produces less than £100 of tax. So interest of less than £500 does not need a return.

https://www.litrg.org.uk/tax-guides/bereavement/how-does-personal-representative-deal-income-and-capital-gains-arising-after

HappyScotsman

I know it's nit picking. 

Equally you could "forget about" the £12k all together when filling in the IHT papers. Bank of Blahshire have satisfied the requirements and it's up to you to be honest and hand over £5k to the tax man.