Estate income tax on interest

info999

I am dealing with my late grandma's estate. There will be income tax on interest received since date of death.

I'm just wondering whether the income tax should be applied to the tax year in which the monies are actually received/realised into the respective bank accounts or a more complex calculation is required as to the period in which the interest 'accrued'?

Technically the interest accrued within two separate tax years following my grandma's death in February 2025.

I'd greatly appreciate some advice on the matter please!

Dazed_and_C0nfused

info999 said:

I am dealing with my late grandma's estate. There will be income tax on interest received since date of death.

I'm just wondering whether the income tax should be applied to the tax year in which the monies are actually received/realised into the respective bank accounts or a more complex calculation is required as to the period in which the interest 'accrued'?

Technically the interest accrued within two separate tax years following my grandma's death in February 2025.

I'd greatly appreciate some advice on the matter please!

Is it enough interest to need to be reported?

https://www.gov.uk/probate-estate/reporting-the-estate

Jowwie

Just for awareness, if you are holding the funds in one of your own bank  accounts (as opposed to an executor account) the interest could be taxed as if your own income. You might not get the demand until after the end of this tax year.