Income tax after death

Elliemiss

Hi

UPDATE: Rang HMRC 8am this morning, very helpful, appears to all be up to date.

I've had a quick look but can't really find a definitive answer.

My brother died in October '25 I completed the tell us once form and heard from HMRC that it would take approximately 8 weeks to sort the tax out.

I've heard nothing, I would like to distribute the estate, should I contact HMRC to see if all tax is paid, there's been a small amount of pension and savings interest since October totalling about £1000, should I let them know?

Is there much chance of tax bills from previous years arriving also?

Thanks

Savvy_Sue

What tax was this? Is his estate liable to IHT? Have you applied for probate / letters of administration?

Elliemiss

Sorry, I should have been clearer, have grant of probate. Sorted out IHT etc.

I'm talking about income tax.

poseidon1

https://forums.moneysavingexpert.com/discussion/6657300/income-tax-after-death

The pension should have been taxed at source if it was employment related and related to the period up to your brothers date of death. Being pre death pension, it is a 'capital' asset of the estate and should have been reported as such for probate purposes.

Any other income received by the estate after death ( such as bank interest) is potentially liable to income tax and to be reported by you as executor, but only if it exceeds £ 500 this tax year. The HMRC link below explains -

https://www.gov.uk/probate-estate/reporting-the-estate#:~:text=Income%20received%20from%206%20April,report%20the%20estate%20to%20HMRC%20.

Misha96

Get in touch with HMRC again.

I owed Income Tax on my uncle's estate..Despite my having informed HMRC in writing of what I believed would be owed for the period between death and probate, I waited about 15 months post-probate before they wrote back, agreeing with my figures and issuing a bill. This was a very ordinary estate.

If you know what you owe, you could distribute the estate.

Elliemiss

@Misha96

Thank you.

I can't understand why it takes them so long.

Literally since he died there has been one payment of private pension £600 and approx £300 savings interest since closing his accounts.

I'm confident there's no income tax due this year but am worried about previous years. He was very meticulous about paying tax he owed so I don't know?

Just another worry after a very traumatic bereavement and difficult house sale.

Thanks for your reply.

otb666

We had a letter more or less straightaway saying they were working it out then couple of weeks later a refund of 1500 as tax overpaid in the year he passed away. He was on a CS Pension and state pension.

Elliemiss

@otb666

Thank you.

I'm veering towards the idea that there is unlikely to be any tax owed, he did have a repayment a month before he died for the previous tax year (only because I pushed for it as it was important to him)

Elliemiss

@poseidon1

Thank you for your earlier reply.

His personal pension was reported on his probate form. It wasn't taxable, he was looking forward to later this year getting his state pension but now that's just gone (he took early retirement)

mta999

You could distribute the estate now us hold back a little bit for a few months or until you hear from HMRC

Elliemiss

@mta999

Thank you

That's what I've decided to do, have explained to beneficiaries I'm doing that and all good.