As many people will now be aware, as from 6th April 2016, Banks, Building Societies and Companies no longer apply tax to interest or dividends and as from April 2017 this has been rolled out to Investment Company interest, dividends and distributions.

This will have a knock on effect for anyone who is acting as a Personal Representative, whether it be as an Executor under a Will or an Administrator under the rules of intestacy (intestacy being where someone has died without making a Will).

During a persons lifetime they get a personal allowance before tax becomes payable of £11,100 (this increases for people in some circumstance i.e. people born before 6th April 1938) and you do not have to account for the tax on savings interest if it is below £1,000, a tax free ISA or on dividends if they are below £5,000.

These allowances do not, however, apply to estate income and unless the estate’s only source of income is savings income and the tax liability is less than £100, a Trust and Estate Tax Return will be required in all cases.

Advice on Estate Taxation Matters

For friendly helpful advice on this matter and any other matters relating to estate taxation, please get in touch with Juliette Carter,  on 01782 662424.