Tax due (savings interest) on estate before or after IHT400 ?

rnem170 Forumite Posts: 48
Part of the Furniture 10 Posts Name Dropper Combo Breaker
QQ folks.   I'm still working on the IHT forms following my mothers death on April 1st.  A new question....

Will any tax liability be due for her earnings in the year before she died.   What counts as earnings, eg:

State Pension
Personal Pension (Local Gov)
Widows Pension

On top of those there's approx £130k in savings accounts - Interest on two of these is £870.
There is also a cash ISA with £70k which I understand is tax free until date of death, but then not tax free after.   Correct?

Do I have to get Tax Certificates for the period up to death and figure out if any tax is due on the estate before completing IHT400?

Thanks in advance


  • Sarahspangles
    Sarahspangles Forumite Posts: 1,128
    Ninth Anniversary 1,000 Posts Name Dropper
    edited 31 May at 12:40PM
    Do you have to complete IHT400 at all i.e. is this an excepted estate?  You can estimate figures for the IHT return. 

    If you used TellUsOnce when she passed away eventually HMRC will write to you to say they’ll check her tax position and confirm any under/overpayment within eight weeks. In fact it took a bit longer for my MIL, but they eventually sent a cheque.  With your mum passing away so close to the end of the tax year her income tax should be pretty close? If her savings interest is within the £1000 personal allowance there’s no tax on that. If there is a notice of coding or (non-State) pension statements you can get a feel for whether the amounts deducted look right.

    There’s no personal savings allowance for an estate but you pay tax on savings during the administration period later.
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