Income tax for deceased to date of death.

[uspaul666]

Am I right in thinking that the value of an estate at the date of death would include accrued interest as of that date but liability to income tax is paid on actual income received up to the date of death and ignores the accrued interest ?

[PinkDalek]

Am I right in thinking that the value of an estate at the date of death would include accrued interest as of that date …

Yes, I believe so. If you are asking in relation to the IHT forms, IHT406 has a column entitled Amount held, including interest, at date of death, although the current IHT400 guidance notes don't seem to expand. Our solicitors added the interest received (as it happens from a very few days after the decease).:

https://assets.publishing.service.gov.u ... IHT406.pdf
https://assets.publishing.service.gov.u ... online.pdf

but liability to income tax is paid on actual income received up to the date of death and ignores the accrued interest ?

Yes, once the the accrued interest etc is received, the Income Tax liability on the interest is the responsibility of the Estate (at the basic rate).

[uspaul666]

Many thanks PD.