Estate income and relief for IHT paid

[Paula Henderson]

As it is not necessarily known by the executors what rate of tax the benficiary pays, do you always exclude accrued pre death income on R 185 to ensure that relief under s 669 ITTOIA is automatically given?

[Lee Young]

An R185 should list all the income received by the executors during the administration period. This will by definition include the interest accrued (but unpaid) at the date of death.

[Paula Henderson]

But if relief is sought under s 669, is the relief given in the R185 or in the beneficiary's tax return?

[maths]

As the relief is granted to the residuary beneficiary it should be claimed in the self assessment return of the beneficiary.