Deceased's Tax Return UK: Executor Guide to Final Self Assessment 2025

By Farra Editorial TeamLast updated: 15 October 2025

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When someone dies, their tax affairs don't automatically stop. As executor or administrator, you're responsible for completing the deceased's final tax return covering the period from 6 April (start of the tax year) to the date of death. This may involve filing a Self Assessment return, paying any tax owed from estate funds, or claiming refunds due. HMRC gives extended deadlines for deceased tax returns, but missing them results in penalties that reduce the estate value for beneficiaries.

This guide explains exactly when a final tax return is required, how to notify HMRC of the death, what income to report, critical deadlines (the later of normal deadline or 12 months after month of death), how to claim tax refunds, and the crucial difference between the deceased's final return and the estate's own separate tax obligations after death. Many executors miss refunds they're entitled to or inadvertently incur penalties through late filing.

Critical requirement: You must notify HMRC of the death as soon as possible using their Bereavement Helpline (0300 200 3300). HMRC will then confirm whether a final tax return is required and provide the deceased's tax records. Don't wait - some tax refunds cannot be processed until HMRC is officially notified.

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Who Must File a Tax Return for a Deceased Person?

Not everyone who dies needs a final tax return filed. Whether you need to file depends on the deceased's income sources and whether they were registered for Self Assessment.

SituationTax Return Required?What Happens Instead
Registered for Self Assessment (filed returns previously)YES - must file final returnExecutor completes return for 6 April to death date
Self-employed or partnership income in year of deathYES - must fileReport business income/expenses to date of death
Rental property income over £1,000/yearYES - must fileReport rental income and expenses to death date
Capital gains requiring reportingYES - must fileReport asset sales and calculate CGT
Taxable investment income over £10,000YES - usually fileHMRC may issue Simple Assessment instead
Only PAYE employment + pension (tax deducted at source)NO - usually not requiredHMRC issues automatic tax calculation
Only State Pension and small savings interestNO - not requiredTax already handled via PAYE codes
Received Simple Assessment from HMRCNO - not requiredHMRC calculates tax; executor just pays if owed

Simple Assessment: HMRC may issue a "Simple Assessment" instead of requiring a full Self Assessment return if the deceased's tax affairs were straightforward. This is an automatic calculation showing tax owed or refund due. If you receive a Simple Assessment, you don't need to file a return - just pay any tax owed or claim the refund.

Critical Deadlines for Deceased Tax Returns

HMRC gives executors extra time to file deceased tax returns, but you must understand the deadline rules to avoid penalties.

Deadline Rule: The Later Of...

Deadline = LATER of:

31 Jan

Normal Self Assessment deadline (31 January following end of tax year)

12 months

12 months after the end of the month in which death occurred

Worked Examples

Example 1: Died 15 March 2024 (2023/24 tax year)

  • Normal deadline: 31 January 2025
  • 12 months after end of month of death: 31 March 2025 (12 months after end of March 2024)
  • Actual deadline: 31 March 2025 (later date)

Example 2: Died 15 June 2023 (2023/24 tax year)

  • Normal deadline: 31 January 2025
  • 12 months after end of month of death: 31 July 2024 (12 months after end of June 2023)
  • Actual deadline: 31 January 2025 (later date)

Example 3: Died 20 November 2024 (2024/25 tax year)

  • Normal deadline: 31 January 2026
  • 12 months after end of month of death: 30 November 2025 (12 months after end of November 2024)
  • Actual deadline: 31 January 2026 (later date)

Penalties for Late Filing

  • 1 day late: £100 immediate penalty
  • 3 months late: £10 per day (max £900 additional)
  • 6 months late: 5% of tax owed or £300 (whichever is greater)
  • 12 months late: Another 5% of tax owed or £300 (whichever is greater)
  • Interest: Charged on unpaid tax at Bank of England base rate + 2.5%

Appeal rights: You can appeal penalties if you have a "reasonable excuse" such as being unaware you were the executor, serious illness, or delays getting information from third parties. Appeals must be made within 30 days of the penalty notice.

What Income to Include in Final Tax Return

The deceased's final tax return covers the period from 6 April (start of the tax year) to the date of death. You must report all taxable income and gains received or made during this period.

Income Types to Report

Employment Income

What to include:

  • Salary, wages, bonuses paid from 6 April to date of death
  • Tax deducted under PAYE (shown on P60 or final P45 from employer)
  • Benefits in kind (company car, medical insurance, etc.) - use annual value × proportion of year
  • Any redundancy pay or termination payments (may be partially tax-free)

Get from: Employer (request final P45 and statement of benefits)

Pension Income

What to include:

  • State Pension payments (DWP provides amount or check bank statements)
  • Private and workplace pension payments received from 6 April to death
  • Tax deducted from pensions (usually under PAYE)
  • Any pension lump sums taken before death

Get from: Pension providers (request statements), DWP for State Pension

Self-Employment Income

What to include:

  • Business income from 6 April to death (invoices issued and received)
  • Allowable business expenses incurred to date of death (keep receipts)
  • Capital allowances on business assets (pro-rated to death date)
  • Class 2 and Class 4 National Insurance contributions

Get from: Business records, bank statements, invoices

Rental Income

What to include:

  • Rent received from 6 April to death
  • Allowable expenses: repairs, insurance, agent fees, ground rent, service charges
  • Mortgage interest: claim 20% tax credit (not full deduction)
  • Wear and tear allowance (for furnished properties if applicable)

Get from: Rental statements, letting agent accounts, bank statements

Investment Income

What to include:

  • Bank and building society interest from 6 April to death (gross amount)
  • Dividends from shares (only if declared before death, even if paid after)
  • Income from unit trusts, OEICs, and investment bonds
  • Income from overseas investments (convert to £ using HMRC rates)

Get from: Bank statements, investment platform statements, dividend vouchers

Capital Gains

What to include:

  • Sale of property (not main residence if eligible for PRR)
  • Sale of shares, funds, or other investments before death
  • Disposal of business assets (may qualify for reliefs like Business Asset Disposal Relief)
  • Gifts of assets (valued at market value for CGT even if no money received)

Annual CGT allowance: Deceased gets full year allowance (£3,000 for 2024/25) even if died partway through year

How to Claim Tax Refunds from HMRC

Many deceased people are owed tax refunds, especially if they worked under PAYE and died partway through the tax year. The full Personal Allowance applies even if they only worked part of the year, often resulting in overpaid tax.

When Refunds Are Due

  • Deceased had PAYE employment/pension and died partway through tax year (full Personal Allowance often creates refund)
  • Tax deducted at emergency rates or wrong tax code used
  • Made pension contributions or Gift Aid donations that weren't reflected in tax code
  • Had large allowable expenses (rental or business) that exceeded income
  • Paid tax on savings interest but income below Personal Savings Allowance

Claiming Process

Step 1: Notify HMRC of Death

Call HMRC Bereavement Helpline (0300 200 3300) or use Tell Us Once service (via registrar when registering death). HMRC cannot process refunds until officially notified.

Step 2: HMRC Reviews Tax Position

HMRC automatically reviews deceased's tax for year of death. If refund due and under £10,000, HMRC sends it automatically (usually 4-6 weeks). If over £10,000, requires claim form R27.

Step 3: Complete Form R27 (If Required)

For refunds over £10,000 or complex cases, complete form R27 (Repayment Claim). Include:

  • Deceased's details and National Insurance number
  • Executor/administrator details
  • Copy of death certificate
  • Copy of probate grant (if estate exceeds probate threshold)
  • Bank details for refund payment (estate account)

Step 4: Receive Refund

HMRC pays refund to executor or estate bank account. Include refund in estate accounts and distribute to beneficiaries per will. Refunds typically paid within 4-6 weeks of claim but can take longer if HMRC needs additional information.

Important: Tax refunds can ONLY be claimed within 4 years after the end of the tax year in which the overpayment occurred. For example, overpayments in 2023/24 tax year must be claimed by 5 April 2028. Don't delay - claim as soon as possible after death.

Estate Tax vs Deceased Tax: Critical Distinction

One of the most common sources of confusion is the difference between the deceased person's final tax return and the estate's own tax obligations. These are completely separate.

AspectDeceased's Final Tax ReturnEstate's Tax Return
Covers period6 April to date of death onlyDate of death onwards (during probate administration)
Form usedSA100 (individual Self Assessment)SA900 (Trust and Estate Tax Return)
Income includedDeceased's salary, pensions, rental, investment income to deathRental income, dividends, interest received AFTER death
Personal AllowanceFull Personal Allowance (£12,570 for 2024/25)Reduced allowance (£325 basic amount)
Savings Allowance£1,000 (basic rate) or £500 (higher rate)£5,000
CGT allowanceFull annual allowance (£3,000 for 2024/25)£3,000 per year (year of death + next 2 years)
Who filesExecutor/administratorExecutor/administrator
DeadlineLater of 31 Jan or 12 months after end of month of death31 January following end of tax year (normal SA deadline)

When Estate Tax Return Is Required

The estate must file its own tax return (SA900) if:

  • Income after death (rental, dividends, interest) exceeds estate allowances
  • Executor makes capital gains selling assets (above £3,000 allowance)
  • Probate administration takes more than one tax year (may need multiple estate returns)
  • Estate has complex income sources or significant investment income

Common Mistakes and How to Avoid Them

❌ Not notifying HMRC of the death

Solution: Call HMRC Bereavement Helpline (0300 200 3300) immediately or use Tell Us Once service via registrar. HMRC cannot process tax affairs or refunds until notified.

❌ Assuming no tax return needed because deceased was PAYE

Reality: Even PAYE employees may need return if they had other income (rental, self-employment, large investment income) or capital gains. Always check with HMRC.

❌ Missing tax refunds because you didn't check

Solution: Many people are owed refunds, especially if died partway through tax year. HMRC reviews automatically for PAYE but you must check for other income sources. Don't leave money on the table.

❌ Confusing deceased's return with estate return

Solution: These are completely separate. Deceased return (SA100) covers 6 April to death. Estate return (SA900) covers income/gains after death. Different forms, allowances, and deadlines.

❌ Distributing estate before paying tax owed

Solution: Executor is personally liable if they distribute estate funds and can't pay tax bill. Always wait for HMRC final statement and pay any tax due before distributing.

❌ Using partial-year allowances by mistake

Solution: Deceased gets FULL year Personal Allowance, CGT allowance, etc. even if died in April. Don't pro-rate - this is a common mistake that results in overpaying tax.

❌ Missing deadline and incurring penalties

Solution: Calculate deadline correctly (later of 31 Jan or 12 months after end of month of death). Set reminders. If struggling, get professional help - £100+ penalties reduce beneficiaries' inheritance.

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Get expert guidance through every step of death administration—from probate to provider notifications—with compassionate AI support available 24/7.

AI probate prep tool

Calculates IHT, validates everything, prepares your application — saves £2,000-5,000 vs solicitor

24/7 AI emotional support

Industry-first companion for guidance and reassurance anytime

Complete contact database

Phone scripts and details for 60+ UK banks, utilities, and providers

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Launch pricing • No subscription • All features included

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Farra is a digital assistant that helps with death admin and bereavement support in the UK. From registering a death to applying for probate, Farra provides step-by-step guidance, essential documents, and practical help for families navigating the administrative side of loss. Designed to bring clarity and compassion to the most difficult moments, Farra simplifies estate paperwork, bank notifications, and funeral-related tasks so you can focus on what matters.