When thinking about taxes for a deceased person’s estate, most people only really think about the dreaded Inheritance Tax at 40%. The law also imposes that both Income Tax and Capital Gains Tax (CGT) may be payable in an estate administration. The period between date of death and the end of the administration of an estate is known as the “period of administration” and the Personal Representatives are responsible for reporting and paying any Income Tax and/or Capital Gains Tax

Most people believe Inheritance Tax is a tax only payable on death, however, that is not the case. Inheritance Tax must be considered whenever someone makes a ‘transfer of value’, this could be giving away assets to a child in your lifetime for example. When a person dies, there is a deemed transfer of value of their assets and Inheritance Tax (IHT) must be considered when dealing with the administration of the estate. The Personal Representatives will need to consider: - o