Will / trust

RAS

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Skint_yet_Again

 Can anyone help me with the ISA figure for probate please? Do I include the interest up to date of death that has accrued even though it hasn’t been paid yet? Thanks for any help 

Keep_pedalling

Skint_yet_Again said:

 Can anyone help me with the ISA figure for probate please? Do I include the interest up to date of death that has accrued even though it hasn’t been paid yet? Thanks for any help 

No, you don’t need to declare that.

Skint_yet_Again

Thanks @Keep_pedalling so will it be income of the estate? It’s quite a big sum. And does that mean it loses its tax free status? 

Keep_pedalling

Skint_yet_Again said:

Thanks @Keep_pedalling so will it be income of the estate? It’s quite a big sum 

As it is in an ISA the interest will be free of income tax.

Skint_yet_Again

Sorry if I am being thick but I don’t understand. 🤯 How do I account for the interest? Surely it is still income even if not liable to income tax ? 

Keep_pedalling

Skint_yet_Again said:

Sorry if I am being thick but I don’t understand. 🤯 How do I account for the interest? Surely it is still income even if not liable to income tax ? 

As far as HMRC are concerned you don’t have to account for it.

Skint_yet_Again

Oh ok 👍 what about normal savings accounts? Presume I include the interest of those outside of ISA’s ?

Skint_yet_Again

IHT406 says include cash ISA’s and interest? 

Can you link me to guidance to back up not to include it? Please don’t be offended but I try to make sure I back up advice received before following it and I can’t find anything about accrued isa interest 

probate_slave

Keep_pedalling said:

Skint_yet_Again said:

 Can anyone help me with the ISA figure for probate please? Do I include the interest up to date of death that has accrued even though it hasn’t been paid yet? Thanks for any help 

No, you don’t need to declare that.

I'm afraid I have to disagree with KP here. The accrued interest on your father's cash ISA is part of his death estate, and should be included in the probate value.
The same principle applies to accrued interest on his taxable savings accounts. 
I realise you're not submitting an IHT return nor paying IHT, but the guidance still applies:
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm10070#:~:text=cash,shown