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Taxable income in year of death

When an individual dies, there is a personal income tax liability on the income that arises in the period starting on 6 April before death and ending with the date of death. This note describes how to quantify that income and calculate the tax due.

Generally speaking, taxable income in the year of death is calculated in the same way as for any other tax year, except that the end of the period is the date of death. However, there are a number of special rules that have to be considered and these relate mainly to the time at which income and deductions are taken into account. This is important for deciding whether the income arising is that of the deceased or that of the personal representatives.

For all sources of income, the usual basis of assessment rules apply, and most questions about calculation and recognition can be resolved by reference to them. A number