When a loved one passes away, amongst the various arrangements you need to make, one question often arises: who is responsible for handling their final tax return? Contrary to what some believe, death does not cancel this obligation. The executor, administrator or surviving relatives must report the deceased’s income to HMRC, even for the year in which they died.
The person responsible depends directly on their legal relationship to the deceased and whether there is a will. A surviving spouse or the executor named in a will have specific duties, and the tax position must be settled according to UK law, regardless of family circumstances.
Who must file a tax return after a death?
In the United Kingdom, the person responsible for the deceased’s final tax position is the personal representative—that is, either the executor (if there is a will) or the administrator (if there is no will, appointed by the court via a grant of letters of administration). HMRC treats both under the single term “personal representative” and holds them legally responsible for notifying HMRC, filing any required returns and paying or claiming tax due from the estate.
If the deceased had a valid will
The executor named in the will becomes the personal representative. They must notify HMRC of the death and ensure that any required tax return is filed for the period from 6 April in the tax year of death until the date of death. The executor is responsible for gathering the deceased’s financial records and submitting the final Self Assessment tax return (SA100) if required by HMRC.
If the deceased had no will
Where there is no valid will, the probate court grants letters of administration to the next of kin or another suitable person, who then becomes the administrator and assumes the same responsibilities as an executor. The administrator must still file any required tax return and settle the deceased’s tax affairs with HMRC.
If the surviving spouse or civil partner needs to file
The surviving spouse or civil partner has their own separate tax position. For the tax year in which the death occurred, they are assessed as a single person from the date of death to 5 April. Any income they received jointly with the deceased must be apportioned and declared correctly. The personal representative and the surviving spouse may need to coordinate to ensure both tax positions are properly reported.
What must be filed in the year of death?
HMRC distinguishes between two separate tax matters:
1. The deceased’s final personal tax position (up to date of death)
This covers all income and gains received from 6 April to the date of death, including employment income, pension payments, savings interest, dividends, rental income and any chargeable capital gains. The personal representative must file the Self Assessment tax return (SA100) for the deceased if HMRC requires one.
2. Tax on income and gains during the administration period after death
This relates to the estate as a separate taxable entity and is dealt with separately, not as part of the deceased’s personal position.
Filing the final Self Assessment return
If the deceased was already registered for Self Assessment, the personal representative must submit a final SA100 return covering the period from 6 April to the date of death. All income sources must be included. The return must be filed on paper, as HMRC does not accept electronic tax returns from personal representatives for deceased taxpayers.
If the deceased was in the PAYE system only (not Self Assessment), HMRC will normally carry out a PAYE reconciliation once notified of the death. The personal representative must check this reconciliation and either pay any underpaid tax from the estate or claim any refund due.
What are the deadlines for filing?
The deadline for filing the deceased’s final tax return follows the standard Self Assessment calendar. There is no shortened deadline specific to deaths. The personal representative should act promptly, however, as gathering the deceased’s documents—previous tax notices, bank statements, death certificate—takes time. A late or incomplete return may result in penalties that will burden the estate.
It is essential to notify HMRC of the death as soon as possible. The personal representative should write to the deceased’s local HMRC office with the death certificate and details of the deceased’s tax reference number to ensure the account is properly closed and the final return processed correctly.
How to complete the final tax return
The final Self Assessment return for the deceased must be filed on paper, as HMRC does not accept electronic submission from personal representatives. Send the paper return to HMRC’s address for the deceased’s tax office. You must clearly indicate that this is a return for a deceased person and include the date of death.
All income received up to the date of death must be declared: wages, pensions, rental income, investment income and any other sources. Allowable deductions and tax reliefs that applied up to the date of death remain valid. Where tax has been deducted at source (such as PAYE or savings interest tax), this will be adjusted in the final calculation.
Avoid costly mistakes: ensure the surviving spouse files their own return
Many surviving spouses file only the deceased’s return and fail to submit their own tax return for income received after the death. This can result in an unexpected tax assessment months later, long after the estate has been settled.
Inheritance Tax declaration and timescales
Separately from income tax, the personal representative must also handle Inheritance Tax (IHT). An IHT account (form IHT400) must be submitted to HMRC within four months of the end of the month in which the death occurred, even if no IHT is due. This declaration sets out the value of the estate and calculates whether any IHT is payable by the beneficiaries.
A solicitor or probate specialist is not always legally required, but becomes necessary when the estate includes property or exceeds certain complexity. Professional help ensures the correct valuation of assets, proper calculation of IHT and compliance with HMRC deadlines.
| Task | Who is responsible | Approximate deadline |
|---|---|---|
| Final income tax return (SA100) | Personal representative (executor or administrator) | Standard Self Assessment deadline |
| Inheritance Tax account (IHT400) | Personal representative, often with legal advice | 4 months from end of month of death |
| Notify HMRC of death | Personal representative | As soon as possible |
Other tax matters to address
If the deceased held any assets subject to Capital Gains Tax, any gains realised up to the date of death must be reported. Unlike income tax, there is a step-up in basis at death, which means gains are calculated only on increases in value after the date of death.
If the deceased was a business owner or self-employed, special rules apply. The final return must cover only the period to the date of death, and the business income must be apportioned accordingly. Professional accounting advice is strongly recommended in such cases.
Any tax deducted at source must be reviewed and adjusted in the final calculation. Where the deceased paid more tax than due, a refund can be claimed from the estate. Conversely, if insufficient tax was paid, the balance becomes a debt of the estate to be settled by the personal representative.
It is important to keep copies of the death certificate, the final tax return, the IHT account and all supporting documents. These records are essential in case of any future query from HMRC or if the personal representative is later questioned about how the estate was settled.
