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HMRC internal manual

Compliance Handbook

Interest: Late payment interest: Special provisions: Special provisions for start dates: Person dies - example

You must check whether, and from which date, the FA 2009 interest rules apply to the tax or duty you are dealing with. See CH140160 for full details.

Michael was due to pay the balancing payment of his 2013-14 income tax liability on 31 January 2015, but, unfortunately, Michael passed away on 1 January 2015. The executors of Michael’s estate were unable to pay the tax by the due date because they had not obtained probate. Probate was granted on 1 May 2015 and they made payment on 20 May 2015.

The late payment interest start date is the later of

  • the normal late payment interest start date, which is 31 January 2015 in this example, and
  • the day after 30 days that start from the grant of probate or letters of administration, or (in Scotland) the grant of confirmation, which is 31 May 2015.

In this example, late payment interest will not be charged because the executors paid the tax on 20 May 2015, which is within 30 days of probate being granted.