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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
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Deceased persons: interest received

Interest paid or credited before date of death

Only the interest which was either paid or credited prior to the date of death should be regarded as the deceased’s income chargeable as savings and investment income under Part 4 ITTOIA . Any tax deducted at source is available for repayment, depending on the level of total income and allowances for the period.

Interest paid or credited after the date of death

If interest

  • accrued between the last accounting date and the date of death, but
  • was not paid or credited until after the date of death

it is the income of the personal representative. Do not apportion it to and from the date of death (see CIR v Hendersons Executors 16TC282).

Tax deducted at source from bank or building society interest

Tax deducted at source from bank or building society interest is not normally available for repayment to the personal representatives.

Uplifting a deposit receipt

Personal representatives may uplift after the date of death a deposit receipt issued by a Scottish or Northern Irish bank. Normally interest from the deposit after the date of death is deemed to be the income of the personal representatives and is not deemed to be income of the deceased.