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Where Taxpayers and Advisers Meet

Income tax on estate v personal allowance

dr eye
Joined:Tue Nov 21, 2023 8:41 pm
Income tax on estate v personal allowance

Postby dr eye » Tue Nov 21, 2023 8:57 pm


I am the PR for an estate, and I'm not using a solicitor. It's a very straightforward estate with only bank and savings accounts, totalling circa £250,000.

Probate has been granted and I am currently collecting in the assets. Money is being held in a savings accounts, in my name, which is used exclusively for the estate. 45% of the estate has been gifted to me in the will.

I understand I am required to informally notify HMRC of any interest earned on the estate during the administration process and that I will have to pay 20% tax on this interest.

My question is, how do I ensure separation between estate income tax, and my own personal allowance. My worry is the bank (understandably) will notify HMRC of the interest earned at the end of the year and this will impact my own personal tax code, despite it being held as part of an estate during the administration process.

I'm sure this is a common issue but I cannot find an answer.

Many thanks.

Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Income tax on estate v personal allowance

Postby pawncob » Thu Nov 30, 2023 8:28 pm

The account should be designated as " personal representative of ", and Execs should pay the tax.
With a pinch of salt take what I say, but don't exceed your RDA

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