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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Accrued and apportioned income: accrued income

Accrued income is income which is due to the life tenant at the date of death, but had not been paid over prior to death. This may happen, for example, where a dividend on company shares has been declared and is due for payment in the life tenant’s lifetime, but the cheque has not been issued prior to the death.

The accrued income belongs to the life tenant personally. This has two consequences:

  1. the accrued income should be included as an asset of the death free estate.
  2. you can accept a deduction of the accrued income from the trust fund in which the deceased had a life interest.