What are the Income Tax rules?
Any income that arises on the assets in the estate after someone dies belongs to their estate. As personal representative, you may receive income due to the estate from the date of death until you complete the administration of the estate, and you are chargeable to Income Tax on that income. Most of the income that you receive will have been taxed already, such as bank interest, building society interest and dividends on company shares. As personal representative you will have no further tax to pay on these types of income. However, income from some sources may not have been taxed when you receive it, for instance: • rents from property • income from abroad • interest from some National Savings Bank accounts or bonds If you receive untaxed income which is not exempt, and have tax to pay on that untaxed income, you are bound by law to tell the Tax Office.