Letting a property as Executor from estate

Ed-1

How does the tax work if a property is rented out while still in a deceased person's estate (for the purposes of paying off a debt owed by the deceased)? The income goes into the estate and the expenses come out of the estate but how is the tax declared?

JGB1955

The estate has to submit an annual tax return.
See Self Assessment tax returns: Returns for someone who has died - GOV.UK (www.gov.uk)

AdrianC

Talk about a convoluted way of doing things...

How long would settling the estate be dragged out for? Is that in the best interests of the beneficiaries?

It would make far more sense for the executor to sell the property to settle the debts. If a beneficiary particularly wishes to retain the property, they can pay into the estate to clear the debt if the value exceeds their bequest.

user1977

OP, assuming all your threads are about the same property, it might be easier to give us the full story rather than posting a series of discrete queries about particular aspects of it.

AnotherJoe

Ed-1 said:

How does the tax work if a property is rented out while still in a deceased person's estate (for the purposes of paying off a debt owed by the deceased)? The income goes into the estate and the expenses come out of the estate but how is the tax declared?

Sounds like a terrible idea for numerous reasons.

For example, how long is the debtor going to wait?

Why would they wait?

Have they accepted the debt being paid asa  series of payments dependent upon uncertain rent payments?

What if the renter doesnt pay, putting more debt into the estate.