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Where Taxpayers and Advisers Meet

Taxable income during the administration period & claiming tax back

DaveBan
Posts:1
Joined:Sun Mar 06, 2022 4:59 pm
Taxable income during the administration period & claiming tax back

Postby DaveBan » Mon Mar 07, 2022 3:37 pm

My Dad died last year and I’ve been doing probate myself. I just wanted to ask a few things about taxable income & the administration period.

I’ve recently claimed a small pension lump sum death benefit which was taxed at 45% by the provider at source. I phoned HMRC to ask whether it’d possible to claim any kind of tax rebate on this, & was told to write in, but I’ve not heard anything back yet.

So, firstly do you think there’s any chance of claiming a rebate? The HMRC adviser said that providers will err on the side of caution and pay more tax than not enough, as the customer will claim back anyway if necessary.

I came across the unclaimed pension after Dad died & it wasn’t nominated to anyone to receive it. So I claimed it as (his son) & as the executor of the estate.

Even though the payment was made to me, would it actually have been made to the estate? If so & there was potential for a rebate, would it involve me claiming tax back from the estate using my own personal allowance? And does this mean it wouldn’t involve Dad’s personal allowance as that would’ve obviously ended when he died?

Also, is this pension lump sum benefit classed as being owed to Dad before he died (just like another private pension he was entitled to but was actually drawing on monthly), or is it classed as income received during the administration period? Because it was taxed at 45% I wondered if it was similar to how income received during the administration period is treated as taxable.

Finally, there was a balance of a monthly pension payment which couldn’t be paid into the bank account as it had to be closed when he died, which meant I had to claim it after. Do I need to let HMRC know about this for income tax purposes – is it considered as income during the administration period because I claimed it during this period? Or is that amount classed as being owed to Dad before he died & thus coming under his personal allowance; in other words does this translate to income owed to Dad before he died as opposed to income accrued since he died?

Apologies if I’ve over-complicated things! Thanks in advance for any advice.

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