Income tax for the personal representatives during the administration period

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note explains how estates in the course of administration are taxed on their income. The note uses the term ‘personal representatives’ (PRs) which encompasses executors appointed under a Will and other PRs appointed under an intestacy or otherwise. This guidance note explains what types of income arise to PRs, and how it is quantified and taxed during the transitional administration period.

Liability of the personal representatives (income tax)

After a person’s death, the property of the deceased is vested in the PRs to enable them to manage and distribute the estate in accordance with the Will or the terms of intestacy. See the Personal representatives guidance note.

The PRs act as a single body and represent the estate as a separate legal entity. During the period of administration, income received by the PRs is assessed on the estate, and the PRs are responsible for paying the tax due.

Just like a UK resident individual, a UK resident estate is liable to income tax on

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Foreign exchange issues

Foreign exchange issuesOverview of foreign exchange provisionsForeign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:Capital assetsOn a realisation basis (ie on disposal)

14 Jul 2020 11:44 | Produced by Tolley Read more

Owner-Managed Businesses

Special rate pool and long life assets

Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool

14 Jul 2020 13:41 | Produced by Tolley Read more

Corporation Tax

Withholding tax

Withholding taxIntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were

14 Jul 2020 14:01 | Produced by Tolley Read more

Income tax for the personal representatives during the administration period

Income tax for the personal representatives during the administration period