Dealing with the estate of someone who's died

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Managing and selling assets

You may have to pay taxes for the estate if there is any new income while you’re dealing with it, for example profits from selling things like shares or property, or dividends from investments.

Selling shares or property

If you sell shares, investments or property that belong to the estate you may have to pay Capital Gains Tax on them if either:

  • they have gone up in value since the person died
  • they have gone up in value since being valued for Inheritance Tax

You do not pay Capital Gains Tax from the estate if you transfer assets directly to a beneficiary, for example property.

Read guidance on:

If you owe Capital Gains Tax on residential property you usually have to report this within 60 days.

If you sell land or property you must also update the property register with HM Land Registry.

Savings, dividends or other income

Some assets can continue to generate income after the death until you transfer or sell them. This could include:

  • rental income from property
  • profits and payments from the person who died’s trade or business
  • interest or dividend payments on savings, shares and other investments

You must work out and pay Income Tax on the full amount of income the estate receives between the day after the death and the date everything has been distributed.

Estates do not get any allowances on savings, income or dividends. Estates pay tax at the basic rates of 8.75% on dividends and 20% on any other income.

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Part of What to do when someone dies: step by step

  1. Step 1 Register the death

    1. Register the death

    Check what to do if:

  2. Step 2 Tell government about the death

    The Tell Us Once service allows you to inform all the relevant government departments when someone dies.

    1. Use the Tell Us Once service to tell government
    2. If you cannot use Tell Us Once, tell government yourself

    You'll also need to tell organisations outside government, like employers and private pension providers, banks, and utility companies.

  3. Step 3 Arrange the funeral

    1. Arrange the funeral
    2. Get help paying for a funeral
    3. Get help paying for a child's funeral

  4. Step 4 Check if you can get bereavement benefits

    You might be eligible for financial help.

    Check if you can get:

  5. and Deal with your own benefits, pension and taxes

    Your tax, benefit claims and pension might change depending on your relationship with the person who died.

    1. Manage your tax, pensions and benefits if your partner has died
    2. Check how benefits are affected if a child dies

  6. and Find bereavement support and services

    Get help with managing grief and the things you need to do when someone dies.

    1. Find bereavement help and support
    2. Find bereavement services from your local council

  7. and Check if you need to apply to stay in the UK

    If your right to live in the UK depends on your relationship with someone who died you might need to apply for a new visa.

    Check the rules if:

    1. Contact UKVI to check the rules for other visas

  8. Step 5 Value the estate and check if you need to pay Inheritance Tax

    To find out if there’s Inheritance Tax to pay, you need to estimate the value of the property, money and possessions (the ‘estate’) of the person who died.

    1. Value the estate and pay Inheritance Tax if it's due

  9. Step 6 Apply for probate

    You might need to apply for probate before you can deal with the property, money and possessions (the ‘estate’) of the person who died.

    1. Check if you need to apply for probate
    1. Apply for probate

  10. Step 7 Deal with the estate

    Pay any debts or taxes owed by the person who's died. You can then distribute the estate as set out in the will or the law.

    1. Deal with the estate
    1. Update property records