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
- 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.