ARTICLE · 31 JULY 2023

Spring Budget 2023: Another Teeny-tiny Step Towards Simplifying The Probate Process For Some Estates!

Mercer & Hole

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When someone dies, it takes time to administer their estate. Bank accounts and investments continue to generate income post death up until they can be closed, sold and/or distributed to the beneficiaries.

United KingdomTax

When someone dies, it takes time to administer their estate. Bank accounts and investments continue to generate income post death up until they can be closed, sold and/or distributed to the beneficiaries. The personal representatives are required to account for this income and pay income tax on it at the basic rate; 20% for interest and 8.75% for dividends. There has been a concession for low-income estates which receive less than £500 income in the administration period. This concession will be formalised and in addition, the personal representatives of low-income estates will no longer be required to report it to the beneficiaries on a form R185 for inclusion on their personal tax returns, if they complete one. It is assumed the £500 limit does not include income generated by an ISA post death up until closure, as this income has been exempt for deaths since 6 April 2018.

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