Tax Returns for Someone Who Has Died: Who Files and When?

Who is responsible

The executor named in the will or the administrator appointed by the court handles the deceased tax affairs. They must tell HMRC about the death and settle any tax owed from the estate.

What the final return covers

It covers income and gains from the start of the tax year (6 April) to the date of death. Income received after death belongs to the estate and is reported on an estate tax return if needed.

Deadlines

HMRC normally expects the final return by the next 31 January after the tax year of death ends, but may accept a later date if the estate is still being settled. Contact HMRC early.

Refunds and reliefs

Often tax has been overpaid, so a final return can produce a refund for the estate. Reliefs such as the personal allowance still apply for the part of the year the person was alive.

Who is responsible and what has to be reported

When someone dies, their tax affairs do not simply stop. The personal representatives, who are the executors named in a will or the administrators if there is no will, are responsible for settling the deceased person’s tax. That includes filing a final Self Assessment return if one is required, covering the period from 6 April of the tax year in which the person died up to the date of death, and for any earlier years where returns are outstanding. The return must show all taxable income and gains up to the date of death, including pensions, employment income, savings interest, dividends, rental profits and self-employed profits.

Importantly, the deceased person’s Personal Allowance of £12,570 is available in full in the year of death. It is not reduced in proportion to the number of days they lived. This often means a repayment is due, particularly where tax has been deducted at source through PAYE. Any repayment goes to the estate, not to an individual. If HMRC has not yet sent a return, personal representatives should contact the dedicated bereavement team and ask what is outstanding. Our guide to using HMRC online services for your tax affairs explains how access works in normal circumstances, but personal representatives will usually need to work with HMRC directly.

Income after death and the estate

Income that arises after the date of death, such as rent or interest on estate assets during the administration period, is not part of the final personal return. It belongs to the estate. Where the estate’s income is significant, personal representatives may need to report it on a separate estate return, and beneficiaries receive details of what they are taxed on. Inheritance Tax is a separate matter dealt with through different forms, and the Self Assessment process does not replace it.

Capital gains tax and the estate

There is no capital gains tax on the assets of the person who has died, as they are treated as acquired by the personal representatives at their market value at the date of death. If assets are sold during the administration for more than that value, a gain may arise, and the estate has its own annual exempt amount for a limited number of years after death. Any gain on the deceased’s own disposals before death is reported on the final return, with the usual £3,000 annual exempt amount. UK residential property gains must be reported and paid within 60 days of completion. See our guide to reporting capital gains to HMRC.

Worked example: a final return that produces a refund

This is an illustrative example. A pensioner dies on 10 September 2026, during the 2026/27 tax year. To the date of death they received £10,000 of pension income, on which £1,000 of tax was deducted through PAYE, and had £5,500 of rental profit.

Without the final return, this £414 would never be claimed. The figure is simple, but the work lies in gathering the facts: pension statements, bank interest certificates, rental records and so on. If the deceased person was due to make payments on account, these can also need to be recalculated.

Common mistakes

• Assuming no return is needed because the person has died.
• Pro-rating the Personal Allowance, which understates the refund.
• Mixing up income before death with income of the estate afterwards.
• Missing outstanding returns for earlier years.
• Distributing the estate before settling tax, leaving personal representatives personally exposed.
• Overlooking that penalties and interest can still arise, so see our late return guidance for the position if the return is already overdue.

Practical checklist

1. Notify HMRC of the death and confirm who is the personal representative.
2. Gather income records for the tax year of death up to the date of death.
3. Check for outstanding returns and unpaid bills for earlier years.
4. Identify any assets sold before death or by the estate.
5. Keep copies of everything. See how long to keep tax records.
6. Review any HMRC letters promptly, using our guide to HMRC letters.

How SATR can help

Our qualified UK accountants can prepare and file the final return online from a fixed fee from £199 + VAT, and can help with gains through our capital gains tax return service.

This is general information, not personal tax advice.

Frequently asked questions

Do I need a UTR for the deceased?

If the person already had a UTR it continues to be used; otherwise HMRC can help you register.

Is inheritance tax the same as income tax?

No. Inheritance tax is a separate tax on the estate; income tax on the final return covers income up to death.

Tax rules and rates change. Figures here reflect 2025/26 guidance; always check current HMRC rules or ask us before acting.

Who can deal with the deceased person’s tax return?

Only the personal representatives, meaning the executor or administrator, can act for the estate. They should be ready to show evidence of their authority, such as a grant of probate.

What deadline applies to the final return?

The normal deadlines apply for the tax year of death, so 31 January after the end of that tax year for online filing. If HMRC issues a notice to file late, different timings may apply, so check current HMRC guidance.

Does the deceased’s tax bill come out of the estate?

Yes. Any tax due is a debt of the estate and should be settled before the estate is distributed to beneficiaries.

Related guides

• Self Assessment Deadline 31 January 2027: Preparation Plan
• What to Do If HMRC Opens an Enquiry Into Your Tax Return
• How to Claim a Self Assessment Tax Refund
• Self Assessment for sole traders