When an individual dies their estate is liable to settle any income tax on the income that arose in the period starting on 6 April before death and ending with the date of death. The liability is assessed on the deceased in the same way as they would have been liable for income tax for the whole tax year had they survived. The estate is also liable to capital gains tax (CGT) on the disposal by the deceased of any property in that period, as assessed on the deceased. Generally, the normal computational rules apply and the tax is calculated on the basis of the deceased’s particular circumstances prior to death. However there are a number of special rules that need to be considered. See Practice Note: The deceased's tax position.
The deceased’s executors or administrators (known as personal representatives (PRs)) are responsible for finalising the deceased's tax affairs. They must file outstanding tax returns and claim any repayments due (see HMRC: Self Assessment tax returns). For estate ...
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