Income and Dividend taxes

GenX0212

SadCodeMan said:

Actually, I take that all back. I think I am wrong. Sorry...

I just found this:
https://assets.publishing.service.gov.uk/media/5a81ed77e5274a2e87dc039a/ISA_guidance_notes_investor_dies_extract.pdf

Unfortnately there is a section which says:

12.10      When an investor dies on or after 6 April 2018 the savings of a deceased investor can continue to benefit from the tax advantages of an ISA during the administration period of the estate. Any interest, dividends or gains in respect of investments in a continuing account of a deceased investor that arise (which in general terms means ‘paid’) after the date of death to the date of closure of the ISA are exempt from tax (see paragraph 3.23 – 3.28). 

That does sound like any dividends paid after the closure are maybe not considered exempt.

I hope there is maybe enough tax allowance in the estate to cover the payment?

Thanks for this, looks like we will have to pay the Dividend Tax. If I had been aware there was a dividend due we could have held off closing the account but you live and learn. Not the end of the world..